LoUs come under non-fund loan. "My domestic loan book is Rs 16 lakh crore and gems and jewellery sector exposure is less than Rs 13,000 crore, which is less than 1%", he said.
Along with Nirav Modi, his maternal uncle Mehul Choksi is also involved in the PNB scam of Rs. 11,292-crore. CBI raided his premises on Friday and scrutinized his wife and brother. Incidentally, government owns 57 per cent share in PNB and the remaining is owned by financial institutions/common investors.
The arrest, which is considered to be a major crackdown on the PNB scam, was made on Saturday.
The Income Tax department warned in an internal note that domestic banks could take a hit of more than $3bn from loans and corporate guarantees provided to Modi and Choksi.
CBI sources say they feel that PNB has been sparing with truth in rebuking only two workers for the whole Rs11,300 crore trick.
Mumbai: A Special CBI Court on Saturday remanded in police custody till March 3 the three accused arrrested in the over Rs 11,500 crore Punjab National Bank (PNB) scam. This prompted the bank to look into all such LoUs. There was no sanction limit against all these firms. Sanjay Kumar Prasad, the Deputy General Manager who was the Assistant General Manager at Braddy House branch between May 2016 and October 2017. The alleged fraudsters claimed that they have been availing such facilities in the past without any securities. Manoj Kharat was just a clerk and typed letter under pressure from Gokulnath Shetty.
"The fraud was done in matter of issuance of unauthorised and fraudulent Letters of Undertaking in favour of foreign branches of Indian based banks and purported Foreign Letters of Credits in favour of foreign suppliers of accused companies", it added. The agency has named three companies in the FIR filed on Friday. The CBI, the main probing agency, has said in its FIR that a majority of the LoUs in the scam were either issued or were renewed in the bank in 2017-18.
However, a Gitanjali source said that it is believed the new charges are not substantially different from the charges announced last week involving Choksi and Modi, who is his nephew.
His high-end eponymous Nirav Modi brand has stores in several of the world's major cities. Raids by CBI also continued at various places connected with Mehul Choksi.
Mumbai: Punjab National Bank officials had met representatives of Nirav Modi and Gitanjali Group to impress upon them to pay outstanding amounts, the bank said in a clarification to the stock exchanges. We are in discussions with stakeholders, including other banks that are party to this development.
Preliminary investigation revealed that Shetty, in connivance with accused companies, had issued fraudulent SWIFT massages without any authority, which were not entered in the trade finance module of the CBS (Core Banking System) to avoid detection, the Central agency said.