PNB-Modi fraud: CBI arrests Gokulnath Shetty, two others

News Network
February 17, 2018

New Delhi, Feb 17: The CBI on Saturday arrested three persons, including former deputy manager of Punjab National Bank (PNB) Gokulnath Shetty, in connection to the Nirav Modi fraud case.

SWO Manoj Kharat and authorised signatory of the Nirav Modi Group of Firms Hemant Bhat were arrested along with Shetty. All three will be produced before the CBI special court in Mumbai today.

Shetty is a co-accused in the Rs 11,800 crore Punjab National Bank scam, in which jewellery designer Nirav Modi is the prime suspect after he and his associates embezzled Rs 280 crore from the bank.

CBI teams visited Shetty's flat at Rustomjee Ozone complex in west Mumbai's Malad on Thursday and Friday and questioned his family and relatives. They were probing when the flat was purchased, how the payment was made and what the source of funds was. They also wanted to know about his bank accounts, lockers and other assets.

The CBI has alleged in an FIR that accused bank officials Shetty and Kharat, in connivance with accused companies and others, defrauded PNB to the tune of Rs 4,886.70 crore.

The agency charged that the accused officials issued fraudulent and unauthorised letters of undertakings in favour of foreign branches of different India-based banks.

The officials omitted entries of Letters of Understanding (LoUs) in the core banking system of the bank issued on behalf of the accused companies to avoid detection, a CBI spokespersn said.

The accused in the new FIR include Mehul Choksi (Managing Director Gitanjali Gems), Gokulnath Shetty (retired DGM of PNB), Manoj Kharat (then single window officer of PNB), and companies -- Gitanjali Gems Ltd , Gili India Ltd, Nakshatra Brand Ltd, directors of the companies Krishnan Sangameshwaran, Nazura Yash Ajaney, Dinesh Gopaldas Bhatia, Aniyath Shivraman Nair and Dhanesh Vrajlal Sheth.

The agency had earlier registered a separate case involving Rs 280-crore fraud, which has now been expanded to cover LoUs worth Rs 6,498 crore issued to accused companies of Nirav Modi and Choksi.

In a complaint to the CBI in January 2018, the Punjab National Bank had alleged that 293 LoUs worth Rs 11,400 crore were fraudulently issued to the companies of Nirav Modi and Mehul Choksi from one of its branches in Mumbai.

Forty-six-year old Nirav Modi , who holds an Indian passport, left the country on January 1, and his business partner Mehul Choksi left the country on January 4, CBI officials said.

The Enforcement Directorate (ED) on Thursday conducted raids on properties belonging to Modi and registered a PMLA case against him, Choksi and others based on the CBI FIR. Both Modi and Choksi have been summoned to appear before the agency within a week's time.

The ED is probing if the allegedly defrauded bank funds were laundered and these proceeds of crime subsequently used by the accused to create illegal assets and black money.

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News Network
September 15,2024

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New Delhi: Two days after he was granted bail and walked out of prison after six months, Delhi Chief Minister Arvind Kejriwal announced his shock resignation from the top post at a party meeting this afternoon. "Two days later, I will resign as Chief Minister. I will not sit on that chair till the people announce their verdict. Elections in Delhi are months away. I got justice from the legal court, now I will get justice from the people's court. I will sit on the Chief Minister's chair only after the order of the people," he said. 

"I want to ask the people of Delhi, is Kejriwal innocent or guilty? If I have worked, vote for me," he said, adding that a meeting of AAP MLAs will be held within the next two days to choose the new Chief Minister for the national capital.

The Aam Aadmi Party (AAP) leader said a member of the party will be named Chief Minister after his resignation. He said he would go among the people and ask for their support. Mr Kejriwal also demanded that the elections in the national capital, scheduled for February, be held in November along with the polls in Maharashtra.

In his address to the AAP workers, Mr Kejriwal launched an all-out attack against the Narendra Modi government and said it was more dictatorial than the British.

He said he did not resign as Chief Minister despite being arrested because he wanted to save democracy. "They have registered cases against (Karnataka Chief Minister) Siddaramaiah, (Kerala Chief Minister) Pinarayi Vijayan, (Bengal Chief Minister) Mamata didi (Banerjee). I want to appeal to non-BJP, do not resign if they register cases against you. This is their new game," he said.

Mr Kejriwal said he had also spoken to former Deputy Chief Minister Manish Sisodia about the issue. Mr Sisodia too was recently granted bail in connection with corruption allegations surrounding Delhi's now-scrapped liquor policy. "I spoke to Manish, he too has said that he will handle the post only after the people say we are honest. My and Sisodia's fate are in your hands now," he said.

Responding to the shocking development, BJP's Harish Khurana questioned why the AAP leader is creating a drama. "Why after 48 hours? he should resign today. In the past too, he has done this. People of Delhi are asking, he can't go to the secretariat, can't sign documents? What is the point then?" Asked if the BJP was ready for early polls, Mr Khurana replied, "We are ready, whether it is today or tomorrow. We will return to power in Delhi after 25 years."

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News Network
September 14,2024

Mangaluru: The block level and District Congress Committee presidents in the state will be changed in the next one month for better reach into society and bring in organisational fortification, said Karnataka Pradesh Congress Committee working president G C Chandrasheker on Saturday.

The All India Congress Committee and KPCC have a vision for bringing a change in how the party works with the last man and woman in the state, he said at a press conference here.

"We are looking at bringing development models into the state with a new vision. We are a party that likes to work with the opposition in the developmental aspects and keep all other matters away that do not relate to the development of the state.

"We have a great respect for the people of the coast who are considered to be forward-looking and perceptible, but it is also true that we do not have the numbers in the upper house and in the Urban Local Bodies (ULBs)," he said.

"Our endeavour is to not only create a strong pro-development workforce at the base level by strengthening the second and third level leadership in the state," he said.

Chandrasheker, who is also a Rajya Sabha member, said that he and his four colleagues of the rank of working presidents of the KPCC are going to every district to infuse the new thinking in our workers and leaders.

"This move will get a new surge considering the party is facing byelections in Shiggaon, Chennapatna and Sandhur segments and also vacant seats in the legislative council, followed by elections to the Urban Local Bodies and Panchayats" he said.

When asked about the reason for the changes, Chandrashekar said most of the people have already lived their tenures. The party wants to reward those who have not been given tickets to contest in the 2023 state assembly elections and 2024 Lok Sabha elections for political reasons.

There are quite good leaders and hard-working ground level workers who have great potential to lead the party in the coming years, he said.

"Women will get at least one top post in all District Congress Committees and block levels. There is also a move to give responsible positions for the workers and leaders coming from different strata of society, which are deliverable. The party will not shy away from it," he said.

The other two working presidents, Dr Manjunath Bhandary and Vasanth Kumar, were also present at the press conference.

Kumar said some of the regions in the state are dominated by the BJP. "We want to end this run and defeat the divisive models of the BJP." Bhandary said the Indian National Congress was aiming at a high development phase in the state and involve the opposition parties and their leaders in the development plans in the state. 

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News Network
September 17,2024

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New Delhi: The Supreme Court on Tuesday halted unauthorised bulldozer action against private property, anywhere in the country, till October 1, dismissing concerns by the government that demolitions sanctioned after following due process could be impacted. 

The "heavens won't fall if we ask you to hold your hands till the next hearing", a bench of Justice BR Gavai and KV Viswanathan declared.

An irate top court - which has already come down hard, twice this month, on 'bulldozer justice' meted out by various state governments - also warned the government against "grandstanding" and "glorification" of this practice. "No demolition, till next, date, without permission of this court," the government was told, and warned the Election Commission may also be put on notice.

The court's reference to the poll panel is significant given elections are due in Jammu and Kashmir (the first Assembly election in a decade) and Haryana, where the Bharatiya Janata Party is looking to return to power. Elections are also due this year in BJP-ruled Maharashtra and Jharkhand.

The court, however, also clarified its order is not applicable to removal of encroachments in public spaces such as roads, railway tracks, water bodies, etc.

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