The agency also said that the quantum of fraud is expected to go up from the current figure
ED officers inspect documents after seizing cash, jewellery and bonds worth crores during a raid in Thane late on Monday. Pic/PTI
The Nirav Modi scam at Punjab National Bank (PNB) was going on since 2008, according to a set of incriminating documents the Central Bureau of Investigation (CBI) has found in its searches. Officers said many senior officials could be involved and that the scam was much bigger than it appeared to be. As per CBI officers, some of the accused and others who were questioned had claimed that the documents were not available at PNB's branch in Brady House, Fort, which is at the centre of the R11,400-crore money-laundering probe.
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Searches continue
The CBI yesterday also questioned 10 executive level officials of the PNB and one senior official of Nirav Modi's company at its office in Mumbai. Officers said they were trying to understand how the scam operated for 10 years, questioning bank and company officials on the various methods used by them since 2008.
Officers also said there were specific circulars of PNB directing that all LOUs be maintained, but this was not done as found in the 2017 LOUs, which the bank reported to the CBI. The agency is finding if this was happening since 2008 or some other modus operandi was used.
The CBI also searched Nirav Modi's Alibaug farmhouse to check if any of the documents or evidence was kept there PNB, in its first FIR, had put the value of the fraud at R280 crore; probe, however, revealed it to be to the tune of over Rs 6,000 crore. The second FIR filed has put the value at over Rs 4,000 crore.
Also read: PNB scam: ED asks Nirav Modi, Mehul Choksi to appear before it on February 22
In defence
Meanwhile, the three PNB officials who were arrested on Monday - Bechhu Tiwari, Yashwant Joshi and Praful Sawant - were yesterday remanded in CBI custody till March 3.
Defence lawyer Prasanna Bhangle said the three had informed higher-ups about the scam and were instrumental in bringing it to light, which had led to the filing of the FIR, and yet, instead of making them witnesses, they had been arrested.
"When [Gokulnath] Shetty [one of the first arrested in the case] retired in May 2017, Joshi took over and was approached by people from Nirav Modi's company. That's when the irregularities came to fore, and he reported it to higher-ups," added Bhangle.
Also read: Plea seeking SIT probe into PNB scam likely to be mentioned before Chief justice of India
Vipul Ambani arrested
The CBI arrested five more accused yesterday, including Vipul Ambani, president of Firestar International. The others arrested are Kavita Mankikar, executive assistant and authorised signatory of three accused firms, and Arjun Patil, senior executive, Firestar. Those arrested in the case against Gitanjali Group are Kapil Khandelwal, group CFO, and manager Niten Shahi.
Rs 6,000 cr
Value of the fraud as per first FIR
Rs 280 crore
Fraud value PNB had claimed
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