In connection with the multi-crore scam detected by the Punjab National Bank (PNB) earlier this year, three companies and 22 individuals have been named in the Chargesheet filed under Section 120B, read with Sections 409 and 420 of the Indian Penal Code (IPC) and relevant provisions of Prevention of Corruption (PC) Act, according to Central Bureau of Investigation (CBI) sources.
The names include Nirav Modi, his brother Nishal Modi, three companies - Diamond R US, Solar Exports, Stellar Diamond and seven employees of these companies Hemant Bhat, Vipul Ambani, Arjun Patil, Kavita Mankikar, Miten Pandya, Manish Bosamiya, and Subhash Parab.
Chartered accountant Sanjay Kumar Rambhia has also been named.
Section 120B, 409, 420 and 13 (2) of PC Act against Nirav Modi, Nishal Modi, M/S Diamond Rus, M/S Solar Exports, and M/S Stellar Diamond has been registered.
12 bank officials - then MD and CEO, Usha Ananthasubraminam, ED K.V. Bhramhaji Rao, ED Sanjeev Sharan, GM Nehal Ahad and GM Rajesh Jindal, then Brady House branch deputy manager, Gokulnath Shetty, single window operator Manoj Kharat, chief manager Bechhu Tiwari, manager Yashwant Joshi, officer Praful Sawant, internal chief auditors Mohinder Sharma and Bishnubrat Mishra in connection with letters of undertaking worth Rs. 6,498.20 crore issued in favour of companies between 2011 and 2017, have been named as well. The charge sheet states that Rs. 6498.20 crores amount of Letters Of Undertaking (LoUs) were issued for these firms between 2011 to 2017.
For dishonestly issuing LoUs without cash margin, and without making entries in the Core Banking Solution (CBS) system of system investigation revealed that fraud perpetrated using swift platform, proceeds of buyer's credit.
Further, funds were siphoned off to purported overseas supplier firms, set up by Nirav Modi and associates.
Meanwhile, the bankers didn't implement circulars and caution notices issued by the Reserve Bank of India (RBI) regarding safeguarding swift operations, misrepresented information to RBI. The reconciliation of swift messages and CBS was not done despite repeated questionnaires and notices of RBI.
Gokulnath Shetty continued to be posted at the same branch for seven years and continued issuing LoUs. CBI for this chargesheet has searched 42 premises, arrested 15 people, have examined more than 80 witnesses and has collected voluminous documentary and digital evidence in the case.