CBI files second charge sheet, names Mehul Choksi

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In a statement, the CBI confirmed it had filed a supplementary charge sheet in the case, but did not name the accused.

The CBI on Wednesday filed its supplementary chargesheet against billionaire Mehul Choksi and his companies under Gitanjali Group regarding the Punjab National Bank scam involving over United States dollars 2 billion.

The stock has been sliding consistently since the fourth week of January this year, that is, around the time news about Nirav Modi's liablities to the bank started flooding the market.

On Monday, the CBI had filed its first charge-sheet against Nirav Modi for defrauding PNB to the tune of ₹6,498.28 crore.

The agency also named PNB Executive Directors K.V. Brahmaji Rao and Sanjiv Sharan, and General Managers Nehal Ahad (who dealt in global operations) and Rajesh Jindal in its chargesheet filed in a special CBI court here. The list included PNB's former MD and CEO Usha Ananthasubramanian and her top officials - Executive Directors KV Brahmaji Rao and Sanjeev Saran and General Manager Nehal Ahad. "Others who have been arrested include Nitin Shahi, who was the assistant finance manager with the Gitanjali Group, and Kapil Khandelwal, CFO, Nakshatra and Gitanjali groups", said a CBI official.

Incidentally, BDO India LLP, the firm engaged by PNB to conduct a forensic investigation into the fraud committed by Modi and his companies, has also shared its findings with the U.S. bankruptcy court. Reconciliation of SWIFT system and CBS was not done even after reminders from the RBI, he said.

The CBI registered two more FIRs subsequently.

The bank's fourth-quarter losses were largely incurred by having to set aside funds to pay the other banks for the illegal guarantees.

CBI chargesheet against jeweller Mehul Choksi concentrates on six LoUs and six FLCs amounting to Rs 512 crores of the alleged over Rs 7000 crore loss caused to PNB by Choksi.

"Without qualifying our opinion, we draw attention to Note No.11 regarding provision at 50% amounting to Rs. 7,178.42 crores as against the total amount of Rs 14,356.84 crore in respect of fraud involving certain accounts under Gems & Jewellery sector as per the dispensation given by the Reserve Bank of India", the auditors said. They all are charged under sections 409, 420, 120B of the Indian Penal Code (IPC).

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