New Delhi: A special Central Bureau of Investigation (CBI) court on Thursday sent Internal Chief Auditor M.K. Sharma of Punjab National Bank’s (PNB) Brady House Branch to the CBI custody till March 13. Sharma was arrested on Wednesday in connection with the fraud case against Nirav Modi and Gitanjali group.
He was allegedly responsible for auditing the systems and practices of the PNB in Brady House Branch. The CBI also conducted a raid at two locations based on questioning of certain people.
They recovered important documents related to Letter of Undertakings (LoU) from a small room in a chawl in Mumbai’s Wadala area. The PNB detected a billion dollar scam earlier this month, in which Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.
The Enforcement Directorate (ED) provisionally attached immovable properties of Nirav Modi and companies controlled by him. The scam, allegedly started in 2011, was unearthed last month, after which the PNB officials reported it to the concerned agencies.