The CBI has registered yet another case of “fraudulent” issuance of Letters of Understanding (LoUs) at the Punjab National Bank where a similar case by diamantaire Nirav Modi and Mehul Choksi were discovered.
The case has been registered against Chandri Papers and Allied Products and retired PNB deputy general manager Gokulnath Shetty and single-window operator at the bank, Manoj Kharat, who were earlier named in the three FIRs related to Nirav and Choksi.
The CBI claimed that the loss caused by the company amounted to Rs 9.09 crore.
According to the FIR, Shetty and Kharat entered into a criminal conspiracy with directors of the company Aditya Rasiwasia and Ishwardas Agarwal for the issuance of two LoUs for $14.21 lakh (Rs 9.09 crore) favouring SBI’s Antwerp branch on April 25, 2017, with a due date of payment on January 20, 2020.
For the issuance of the two LoUs, the CBI claimed, there was neither any available credit limit to the company nor any 110% margin was retained by the bank. Shetty had retired on May 31, 2017.
An LoU is a service whereby the bank guarantees a customers payment obligation of a specified amount to an overseas bank.
The latest case comes a month after the CBI registered three FIRs against Nirav, his uncle and others after the PNB found that it was cheated of Rs 12,967.84 crore through fraudulent issuance of LoUs.
Deccan Herald
