PNB fraud: CBI arrests auditor of bank as probe widens, accused to appear in court today

CBI on Wednesday arrested an auditor of a Punjab National Bank (PNB) branch at the centre of an alleged $2 billion fraud, a police spokesman said

Reuters March 01, 2018 07:05:42 IST
PNB fraud: CBI arrests auditor of bank as probe widens, accused to appear in court today

New Delhi: The Central Bureau of Investigation (CBI) on Wednesday arrested an auditor of a Punjab National Bank branch at the centre of an alleged $2 billion fraud, a police spokesman said, bringing the number of bank employees held to seven as the investigation widens.

The CBI, however, has yet to track down billionaire jeweller Nirav Modi and his uncle Mehul Choksi, whose firms are accused of securing unauthorised loans using fraudulent letters of undertaking from India’s second-biggest state lender.

Modi and Choksi left India in January before the fraud came to light. They have said in letters and statements that they are innocent.

PNB fraud CBI arrests auditor of bank as probe widens accused to appear in court today

Representational image. Reuters

CBI said the arrested auditor, MK Sharma, was “allegedly responsible for auditing the systems and practices” of Punjab National Bank’s (PNB) Brady House branch in Mumbai and for reporting any problems to the zonal audit office.

Sharma will appear in a Mumbai court on Thursday, the spokesman added. Sharma could not immediately be reached for comment

The agency earlier on Wednesday said that they have sent an email to Modi asking him to join the investigation by next week. It has already stepped up questioning of various present and past officials of PNB.

So far it has arrested at least 13 people - seven from the bank and six more from Modi and Choksi’s companies. Investigators have also seized a number of properties from the two, including jewellery and luxury vehicles.

Modi and Choksi, owner of Gitanjali Gems Ltd, are suspected of colluding with bank officials at PNB to obtain unauthorised loans over a six-year period starting in 2011.

The scale of the fraud has raised concerns about the potential for similar cases across India’s banking sector. India’s finance ministry on Tuesday set a 15-day deadline for state banks to take action to improve their oversight of operational and technological risks.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Two Dalit girls found dead in UP's Fatehpur: Kin allege rape, seek CBI probe; autopsy points to drowning
India

Two Dalit girls found dead in UP's Fatehpur: Kin allege rape, seek CBI probe; autopsy points to drowning

The girls' uncle had alleged that when he was informing the district magistrate about the incident over the phone, a police constable came to him and told him not to speak about this to anyone

CBI files FIR against rice export firm, executives for over Rs 1,200 crore bank fraud
India

CBI files FIR against rice export firm, executives for over Rs 1,200 crore bank fraud

Delhi-based Amira Pure Foods Pvt Ltd and its top executives are accused of cheating a consortium of a dozen banks led by Canara Bank

Unnao custodial death: Delhi HC grants time to CBI for reply on Kuldeep Sengar's appeal against jail term
India

Unnao custodial death: Delhi HC grants time to CBI for reply on Kuldeep Sengar's appeal against jail term

On 4 March, Sengar, his brother, and five others were convicted for the death of the Unnao victim’s father in judicial custody by a trial court, which sentenced them to 10 years in prison