CBI books fresh case against PNB scam accused official

CBI FIR states that Debjyoti Dutta was in the business of arranging quotes for LoUs from various foreign funding banks.   | Photo Credit: PTI

The Central Bureau of Investigation has registered a fresh case against Gokulnath Shetty, a former Punjab National Bank (PNB) Deputy Manager, for allegedly receiving over ₹1.08 crore to facilitate Letters of Undertaking (LoUs) in favour of fugitive Mehul Choksi’s Geetanjali Group of companies.

The agency had earlier booked Mr. Shetty for his alleged role in the ₹13,578-crore PNB scam involving diamond merchant Nirav Modi, his uncle Mr. Choksi, their companies and associates.

Mr. Shetty, who has since retired, was then posted at the Brady House Branch of the bank in Mumbai. It is alleged that he conspired with Debjyoti Dutta, the owner of Rishika Financials, during 2014-17 to get bribes for sending LoUs through the bank’s system to foreign funding bank.

In lieu of the alleged favour, Mr. Dutta had given him blank cheques of various bank accounts held in his name and that of his wife, other relatives and staff. The cheques were later filled in by Mr. Shetty in his own handwriting and money withdrawn in various names, alleges the CBI.

The FIR states that Mr. Dutta was in the business of arranging quotes for LoUs from various foreign funding banks. After getting confirmation from him, Mr. Shetty would send them. He used to raise bills to the account of Geetanjali Group maintained with the PNB towards his service charges of getting the quote from the foreign funding bank.

Mr. Shetty used to send the bills to the group companies and on their instruction, transfer the money from their account to those of Rishika Financials in the PNB and Axis Bank, it is alleged.

Mr. Dutta charged 0.05% of the LoU amounts as brokerage from the borrower companies located in India and would share 40% of the amount with the accused bank manager, according to the agency.

In the previous cases, Mr. Nirav Modi and Mr. Choksi are facing extradition proceedings in the United Kingdom and Antigua, respectively.

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Printable version | Dec 1, 2020 11:53:49 AM |

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