It has emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of Punjab National Bank (PNB) were in favour of Hong Kong branches of Allahabad Bank and Axis Bank, that helped facilitate Rs 280.7 crore fraud by jewellery designer Nirav Modi among others.
As per the FIR lodged with the CBI by the Deputy General Manager of PNB's Mumbai branch, a retired deputy manager Gokulnath Shetty and SWO Manoj Hanumant Kharat transmitted SWIFT instructions to the above mentioned banks for raising buyers credit and for funding the Nostro accounts of PNB, without due procedure.
The LoUs were issued on behalf of Diamond R US, Solar Exports, Stellar Diamonds.
The complainant had also requested CBI to issue a look out notice against Nirav Modi and others suspects/accused to prevent them from leaving the country and avoid legal action.
As per sources, Nirav Modi is currently in Davos.
On Februray 5, CBI booked Nirav Modi, his brother Nishal Modi and PNB officials for cheating the bank to the tune of Rs. 280.7 crore.
On February 14, PNB suspended 10 of its officials in this connection.
It is notable that Axis Bank on Thursday issued a letter to National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), notifying that it had undertaken transactions against LoUs issued by other banks, with PNB in the past.
Following the recent developments in the case, the Enforcement Directorate raided premises of Nirav Modi nationwide and registered a case under Prevention of Money Laundering Act (PMLA) against Nirav Modi and others in this connection.