PNB fraud: Special court sends three accused to CBI custody till March 3

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PNB fraud: Special court sends three accused to CBI custody till March 3

The CBI in the remand copy said that the initial examination of LOUs indicate that Rs 280 crore of fraud could go beyond Rs 6,000 crore.

On Saturday, a special CBI court in Mumbai sent all three accused arrested in PNB scam case to police custody till March 3.

Earlier on Saturday, the Central Bureau of Investigation (CBI) arrested Punjab National Bank's former Deputy General Manager Gokulnath Shetty, single window operator Manoj Kharat and authorised signatory of the Nirav Modi Group of Firms Hemant Bhat.

In its remand copy, CBI's Banking Security and Fraud Cell said they need police custody of the accused as there are many missing documents which are to be recovered. CBI is yet to find the modus operandi of accused used in the scam and there are also others accused who are on the run and are yet to be identified. They want to ascertain the exact magnitude of the fraud.

CBI's lawyer Om Prakash told the court that Letter of Undertaking (LOUs) were issued in the name of export and payment to suppliers. But Shetty and Kharat misused their authority.

The CBI in the remand copy said that the initial examination of LOUs indicate that Rs 280 crore of fraud could go beyond Rs 6,000 crore.

While giving 14 days police custody, the court said this case has ramifications on country's economy.