The CBI probe into unearthing the larger scandal behind the Rs 11,300 crore Punjab National Bank fraud will hinge on interrogation of the three arrested persons, who have been sent to police custody till March 3.
The CBI made the first arrests on Saturday morning, and the trio were sent to police custody after being produced before the special CBI court in Mumbai. The agency arrested Gokulnath Shetty, then deputy manager at the Brandi branch of Punjab National Bank who retired on May 31 last year; Manoj kharat, single window operator at the same branch and Hemant Bhat, authorised signatory of the Nirav Modi Group of Firms. Bhatt is also learnt to be the director in at least 15 companies linked to Nirav Modi and his uncle Mehul Choksi.
According to investigators, this is the first step towards a probe that can reach the doorstep of higher officials and bring embarrassment to bigger names in the banking sector and corporate world if the sleuths are able to dig deeper into the conspiracy during its questioning of the arrested accused.
“It certainly does not seem that the lower staff of PNB gave clearances for the Letters of Undertaking which were cashed overseas from different banks,” said an official.
Only if the arrested persons spill the beans, the agency sleuths will be able to dig into the actual conspiracy, an official remarked.
Clearly, the agencies have an uphill task as Nirav Modi along with his wife, brother Nishal and uncle Choksi have already left the country in the first week of January. A look out circular has been issued against the four .
All eyes are on the case after seven government agencies and departments have got involved in one of the biggest crackdown and searches carried out at more than two dozen locations in last two days.
The CBI, ED, Income Tax, ministry of external affairs, Interpol, CVC and ministry of corporate affairs have got involved in the matter.
While the apex vigilance body of the country—CVC—wants to know from the PNB management how the scam remained undetected for so long, the corporate affairs ministry is looking into 150 shell companies allegedly used to route money.
On the other hand, the IT department has to ensure that the provisions of the Income Tax Act and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Income Tax Act, 2015 are not flouted even as the CBI has approached the Interpol to track down Nirav Modi and his family and other accused. The IT department has already attached 29 immovable properties and 105 bank accounts of Nirav and his associates.
The three persons were arrested on Saturday after the agency found that they were not cooperating in the investigations after several hours of questioning. On Saturday, the CBI also conducted searches at the Punjab National Bank's branch at Bradi House Fort in Mumbai, which is being seen as the centre of alleged scam.
CBI sources said six more PNB officials are being examined.
Meanwhile the Enforcement Directorate conducted further searches at 21 locations across the country and seized diamonds, gold, precious stones and jewellery worth Rs 25 crore. The ED is pegging the total seizures till now at Rs 5,674 Crore.
A red-faced government on Friday said that the passports of the persons who are on the run have been suspended which means they cannot travel to any other country from their current location. However, there is no way the agencies can ensure that they return to the country to face trail. The case comes close on the heels of liquor baron Vijay Mallya fleeing the country in March 2016 after defaulting on loan payments.