Rs 114-bn PNB fraud: CBI questions bank's executive director for second day

Pedestrians walk past a Punjab National Bank office in Mumbai (Photo: Reuters)
The CBI has examined Punjab National Bank's Executive Director K V Brahmaji Rao for the second day on Sunday in connection with the Rs 114 billion PNB scam allegedly involving jewellers Nirav Modi and his uncle Mehul Choksi, officials said.

Rao, who started his career in banking 35 years ago as a probationary officer in Vijaya Bank, handled the Mumbai zone, among others, in the bank where the crime was allegedly detected, they said.

The officials said several other officers of the bank were being questioned by the agency as well.

They said the examination was focussed on understanding how the crime was detected by the bank and other procedural issues and their violations. They were not being treated as accused, the officials said.

It was alleged that fraudulent guarantees worth Rs 114 billion were issued to Modi and Choksi through 293 Letters of Undertakings.

According to the website of the PNB, Rao is in charge of the integrated risk management division, credit (operations), monitoring of accounts with exposure of above Rs 500 million, including stock audit and Portfolio Management Service (PMS), industrial rehabilitation and action taken on borrowed frauds reported from Mumbai, where the alleged fraud took place.

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