PNB-scam: CBI arrests three employees, including 'man who revealed fraud'
What's the story
CBI has arrested three PNB employees including one who, according to their lawyer, was "instrumental" in revealing the Rs. 11,400 fraud. All three worked in PNB's Forex department and were allegedly conspiring to issue fraudulent Letters of Undertaking (LoUs) to Modi, which helped him get loans from foreign bank branches. The key accused, Gokulnath Shetty, said this has been going on since 2008.
MO
How Modi and his friends cheated PNB of Rs. 11,400cr
Modi and his associates allegedly embezzled Rs. 11,400cr from PNB on the basis of fake LoUs with the help of bank employees. Based on those documents, Modi got loans from overseas branches of Indian banks. The scam came to light last January, when Modi's companies sought another loan. But by then, the colluding employees had left their positions. PNB then discovered the fraudulent transactions.
Roles
These three employees had important roles to play, CBI says
According to CBI, Tiwari issued circulars for keeping a check on LoUs sent through the SWIFT system, but didn't take steps to follow up. His "deliberate acts of omission" helped the scam to continue, the agency said. Meanwhile, Joshi didn't submit daily reports on SWIFT transactions during 2015-18. Sawant didn't check whether details of SWIFT transactions were being recorded in PNB's internal system.
Status
All three accused shift blame to former deputy manager Shetty
According to the agency, none of the three employees of PNB's Brady House branch in Mumbai are cooperating in investigations and are shifting the entire blame to Shetty. Their lawyer Prassanna Bangale also accused Shetty, saying Joshi "was instrumental in bringing out the case" but he had been arrested. Earlier, CBI had arrested Shetty, another PNB employee Manoj Kharat, and Modi's authorized signatory Hemant Bhat.
Employees
Modi urges employees to 'look for other jobs'
Meanwhile, Modi, whose current location is unknown, has written to his employees in India, asking them to look for other jobs since he will "not be in a position to pay (their) dues." He attributed it to the "seizure and removal of all stocks...and freezing of bank accounts." He also raised questions on the "fairness of the processes that are being followed."
Status
Modi now reportedly writing to CBI, ED, MEA
This is Modi's second communication after the scam broke. Earlier, in a letter to PNB, he had blamed its "anxiety to recover dues immediately" for his failure to repay the loans, which he claimed is much less than the alleged Rs. 11,400cr. Reports say he's also writing to the CBI, ED and MEA. Four FIRs have been filed till now by CBI and ED.