10 persons held in PNB scam remanded in CBI custody

Mumbai: The Central Bureau of Investigation in its further investigation into the infamous Punjab National Bank fraud case registered one more case and arrested ten persons incl-uding two directors of Mumbai-based private fir-m and eight officials incl-uding AGM/Branch Head (presently DGM, PNB, New Delhi), chief manager, manager, officer, chief internal auditor, single window operators of PNB, MCB, Brady House, Mumbai.

The accused were produced before the special CBI court on Wednesday which remanded them to CBI custody till December 21.

The CBI  has arrested th-ese persons for alleged mi-suse of Letter of Undert-akings (LoU) worth over Rs 9 crore in the PNB’s Brady House branch, the fountainhead of a $2 billion scam perpetrated by billionaires Nirav Modi and Mehul Choksi, officials said on Wednesday.

In March, the agency had filed a case pertaining to “fraudulent” issuance of LOUs amounting to Rs 9 crore to Chandri Papers and Allied Products by the PNB’s Brady House branch, they said.

An LoU is a service whereby the bank guarantees a customer’s payment obligation of a specified amount to an overseas bank. The two LoUs were allegedly issued in April, 2017 in favour of SBI, Antwerp, Belgium, they said.

The company did not pay back, bringing the liability on the state-run PNB.