Daijiworld Media Network - Mangaluru (SP)
Mangaluru, Feb 16: It has come to light that a person hailing from Mulky was instrumental in helping diamantaire Nirav Modi to indulge in financial fraud in Punjab National Bank, Mumbai, and siphoning off over Rs 11,300 crore without authorization.
The then deputy manager (since retired) of the bank, Gokulnath Shetty from Mulky had allegedly played a major role in this fraud.
Shetty, who secured his degree from Vijaya College Mulky, went to Mumbai in pursuit of higher education. He obtained postgraduate degree in economics from Sidenham College of Commerce and Economics there. He bagged employment there and served foreign exchange department of Punjab National Bank at Mumbai from 2010 till his retirement.
He reportedly extended wholehearted support to Nirav in his wrongdoings and issued letters of undertaking repeatedly to different companies run by Nirav Modi without collecting any security by way of deposits or otherwise. He also got a clerk of the bank, Manoj Kharat, in this fraud, it is said. Central Bureau of Investigation has registered cases against both of them.
The first such letter of undertaking was issued in 2011. These letters enable the importers to get loans from other banks at low rates of interest. Gokulnath Shetty allegedly issued these letters without following procedures, misusing his powers, without pre-sanctions or sanction letters, and subverting CBS system.
Punjab National Bank has so far suspended ten of its employees relating to this fraud.