CBI registers DA case against retired PNB official accused in Nirav Modi case

NEW DELHI: The CBI has registered a disproportionate property case in opposition to retired deputy manager of Punjab National Bank (PNB) Gokulnath Shetty, a key accused within the Rs 11,400-crore scam involving Nirav Modi, for allegedly accumulating wealth 200 in keeping with cent more than his known assets of source of revenue, officers mentioned Friday.

The case was registered by means of the CBI's Anti Corruption Branch in Mumbai in opposition to Shetty and his wife Ashalata for allegedly accumulating numerous moveable and immoveable homes all the way through the duration between April 1, 2011 and May 31, 2017, the day he retired.

According to the CBI FIR, the couple had accumulated disproportionate property to the song of Rs 2.63 crore all the way through the duration.

Shetty and his wife Ashalata, who is a clerk with Indian Bank, "had acquired disproportionate assets to the tune of Rs 2.63 crore, which are 238.44 per cent disproportionate to their known sources of income", the CBI FIR alleged.

It additionally mentioned that Ashalata had "been found to have actively assisted her husband in the concealment and acquisition of assets raised from ill-gotten wealth and thereby has abetted the offence of possession of disproportionate assets by a public servant".

Shetty was arrested by means of the Central Bureau of Investigation (CBI) in February this 12 months after the banking fraud involving billionaire jewellers Nirav Modi and Mehul Choksi surfaced.

The scam surfaced when corporations of Nirav Modi and Choksi approached PNB's Brady Road branch, Mumbai, in January this 12 months seeking Letter of Understanding (LoU) for payments to suppliers. The professional handling the case sought 100 in keeping with cent money guarantee earlier than this type of letter might be issued to which the company officers mentioned no such guarantee was sought prior to now.

The professional checked the records which didn't display such an LoU to Modi or Choksi's company which resulted in suspicion.

It is alleged that Shetty had been bypassing PNB's core banking system and issuing LoUs fraudulently for seven years.

An LoU is a guarantee which is given by means of an issuing financial institution to Indian banks having branches in another country to grant a temporary credit score to the applicant. In case of default, the financial institution issuing the LoU has to pay the legal responsibility to credit score giving financial institution at the side of accruing hobby.

Shetty allegedly sent messages of these LoUs the use of an international messaging system for banking methods called SWIFT (Society for Worldwide Interbank Financial Telecommunication), which is used to go instructions amongst banks globally to switch price range.

It is estimated that tens of millions of messages are sent day-to-day the use of the SWIFT era globally wherein each and every member financial institution can ship or receive messages of monetary transactions to another financial institution worldwide.

The PNB officers allegedly sent these messages to Indian banks - Canara Bank, State Bank of India, Bank of India, Axis Bank, Allahabad Bank - located in Antwerp, Hong Kong, Bahrain, Mauritius, Frankfurt without making entries within the banking tool in regards to the LoUs.

These LoUs and Letters of Credits (LC) price Rs 11,384 crore have been getting renewed or issued afresh for six years without the financial institution's wisdom.


The Indian banks in another country did not mind as their money was safe (below guarantee from PNB) and increasing as a result of the accruing hobby.


The party was spoiled in January this 12 months when the first renewal arose after the retirement of Shetty, the officers mentioned.


An alarmed financial institution dug out all such LoUs and LCs showing a mammoth legal responsibility in opposition to other banks.


The conniving officer additionally issued Foreign Letters of Credit by means of entering a smaller quantity in business finance module of Core Banking Solutions (CBS) system and producing the reference number and a SWIFT message was sent for the quantity, the financial institution alleged.
CBI registers DA case against retired PNB official accused in Nirav Modi case CBI registers DA case against retired PNB official accused in Nirav Modi case Reviewed by kailash soni on November 16, 2018 Rating: 5
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