'Do whatever you want': PNB claims Nirav Modi, kin fled country after being summoned to repay loans
Punjab National Bank (PNB) officials today told the Enforcement Directorate (ED) that they spoke to Nirav Modi's brother before filing a complaint with the Central Bureau of Investigation (CBI).
The officials of the state-run bank alleged that Nirav Modi's brother was called at its branch office where he declined to return the money, saying they did not have the funds then.
When the bank officials insisted to pay back, the Nirav Modi's brother allegedly remarked, "Do whatever you want."
It was only then that the bank officials formally lodged a complaint with the investigating agency.
But before the CBI could take any action, Nirav Modi along with his family fled India by the first week of January this year.
Gokulnath Shetty, former deputy manager of PNB, today admitted to have unauthorised access to Level-5 password, the highest, which is the key for the SWIFT software that is used to issue Letters of Undertaking (LoUs).
He added that he shared the password with private people, essentially employees and directors of Nirav Modi's company.
PNB detected a Rs 11,400 crore scam in which jeweller Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.
The scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies.
Meanwhile, the PNB filed a second complaint with the CBI on February 13.
The CBI had received the complaint from PNB on January 28 and a case was registered in the case on January 31.