Mumbai sources reported that the Central Bureau of Investigation detained Vipul Chitalia, the vice president of Gitanjali Group of Companies, as a part of its probe into the multi crore Punjab National Bank (PNB) fraud. Meanwhile an official said Chitalia was apprehended at Mumbai airport and brought to the CBI office at the Bandra-Kurla Complex in Mumbai for questioning, but did not divulge any other details about Chitalia's alleged role in the PNB fraud.
Meanwhile the Rs 12,636 crore fraud was allegedly perpetrated by billionaire jeweler Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems. Further it is alleged that Choksi and Nirav Modi got Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) of Rs 12,636 crore issued in favor of foreign branches of Indian banks based on fraudulent claims.
Moreover according to sources the accused officials
of PNB did not enter the instructions for these LoUs and in their internal
software to avoid scrutiny. They were sent through an international messaging
system for banking called SWIFT, which is used to pass instructions among banks
globally to transfer funds. Furthermore in case of default, the bank
issuing the LoU has to pay the liability to the credit giving bank along with
accruing interest.
