PNB Scam: CBI Arrests Bank's Ex-Deputy Manager Gokulnath Shetty

| February 17 , 2018 , 13:14 IST

The premier investigating agency of the country, CBI has arrested Gokulnath Shetty Ex-Deputy manager, Punjab National Bank with other two accused in the multi-million scam. Manoj Kharat, SWO (PNB) and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of firms were also taken under custody.

Shetty's arrest marks the first major arrest in the PNB scam. Gokulnath Shetty was one of the accused in the FIR filed by the CBI in the multi-crore fraud case while his seniors believed he was also one of the most efficient and trusted employees of the branch.

The CBI had reached his residence in Malad on Friday but could not find him, following which the agency had said, “he was untraceable since few days.” Reports say that Shetty and Kharat were the first two detected as working with Nirav Modi.

Now, the three will be produced before the CBI special court later on Saturday. They are accused of issuing Letters of Undertaking (LoUs) from the Mumbai branch of PNB which were issued in the favour of Hong Kong branches of Allahabad Bank and Axis Bank. The issued letters helped to facilitate Rs. 280.7 crore fraud by jewellery designer Nirav Modi among others.

Earlier, on Friday CBI registered fresh FIR against the main accused Nirav Modi and Mehul Choksi. The Enforcement Directorate has been raiding the premises of Nirav Modi across the whole country. A case under Prevention of Money Laundering Act (PMLA) has been registered against him and others. Accused Nirav Modi is currently believed to be in New York.