PNB officials took commission to sign LoUs: CBI

Meanwhile, Congress leader Abhishek Singhvi denied any links between his family and jewellery designer Nirav Modi and Gitanjali Group promoter Mehul Choksi, PTI reported.

The PNB officials 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 in the banking software about the LoUs. While the theories on how India’s biggest banking scam was executed are abound, the CBI has reportedly indicated that Nirav Modi’s associates had access to PNB’s computers.

The ED has seized diamonds, gold jewellery and other precious stones worth Rs 5,674 crore till now in the case.

The third person arrested was Hemant Bhat, described as the “authorized signatory” of the companies tied to Modi, accused of embezzling about $44 million from the bank.

A special court in Mumbai late on Saturday remanded the three suspects to the CBI’s custody for 14 days, saying the case has “consequences for the economy of the nation”, the Press Trust of India reported.

In a direct attack on Prime Minister Narendra Modi, Congress president Rahul Gandhi said on Saturday that the Premier should explain to the country what was the government doing to restore people’s faith in the banking system. Investigations further revealed that documents or applications for issue of fraudulent LoUs were not available with PNB.

Indian Youth Congress activists burn effigies of Nirav Modi as they raise slogans against Punjab National Bank fraud case in New Delhi on Friday.

The scale of the fraud has sparked a slew of probes into the lender, as well as into Modi, his uncle Choksi and companies affiliated to both. But unlike the real Nirav, the fictional businessman functions only by “word-of-mouth”, and is based out of a basement office in Zaveri Bazaar in Mumbai.

“CBI must get fair chance to investigate this very serious offence, which has consequences for the country’s economy”, said judge S R Tamboli, as PNB employee Shetty shifted nervously and blinked frequently.

“Bank frauds are tumbling out of the closet faster than you can say Jack Robinson”, Congress spokesperson Manish Tewari said, alleging that another banking fraud was now out in the open. A Finance Ministry spokesman was not immediately reachable. Many have come to meet me. “Had action been taken then, he wouldn’t have escaped today”, Jeweller DS Jadeja told ANI.

Though MEA denied knowing Modi’s whereabouts, reports claim he was seen at New York’s luxurious JW Marriott’s Essex House.