The trio is suspected to have facilitated fraudulent lines of credit to companies linked to Modi and Choksi, the spokesman said. The remaining 150 fraudulent LoUs worth over Rs 4,886 crore issued for Gitanjali Group are part of the second FIR registered by the agency against Choksi and his companies Gitanjali Gems, Nakshatra Brands and Gili, they said.
The official checked the records which did not show such Letters of Understanding (LoU) to Nirav Modi or Choksi's company which led to suspicion. "We immediately alerted the correspondent banks to recall the funds", City Union Bank said in a regulatory filing on stock exchanges.
The CBI has arrested Gokulnath Shetty, a former deputy general manager at PNB, and Manoj Kharat, a so-called "single window operator" at the lender, CBI spokesman R.K. Gaur said on Saturday.
The Enforcement Directorate (ED), which continued its probe in Rs 11,400 crore alleged fraud at the Punjab National Bank (PNB) have found at least 200 shell firms and "benami" properties which are under the scanner. He argued before the court that instead of money going to foreign exporters, was transferred to Allahabad and Axis Bank at Hong Kong.
The Congress on Sunday continued to step up pressure on the government on the scam with its president Rahul Gandhi asking Prime Minister Narendra Modi and Finance Minister Arun Jaitley to speak up on the multi-crore PNB scam and not behave like "guilty". "Sensationalism, ignorance and falsehood has exceeded all limits in this irresponsible charge", he said, threatening Sitharaman and her colleagues of civil and criminal defamation for making "ill-considered, ignorant and patently false allegations". He further said that Adwait Holding owned a commercial property at Parel, which was rented by Firestone (Firestone Diamond) many years ago. But unlike the real Nirav, the fictional businessman functions only by "word-of-mouth", and is based out of a basement office in Zaveri Bazaar in Mumbai.
The ED also seized diamonds worth Rs 2.30 crore from a Nakshatra jewellers showroom of Gitanjali Group in Bhopal.
The Central Bureau of Investigation (CBI) also arrested a third person, Hemant Bhat, whom a source described as the "authorised signatory" of the companies tied to Nirav Modi. CVC is an apex governmental body to address governmental corruption.
Gandhi said the first complaint was made in May 2015 and the bulk of 90 per cent of transactions were done during this government. I challenge BJP to come and talk about UPA's governance and their governance. "Had action been taken then, he wouldn't have escaped today", Jeweller DS Jadeja told ANI.