CBI filed charges against Choksi in PNB fraud case

Vastavam web: The Central Bureau of Investigation (CBI) has filed charges against five further people including jeweller Mehul Choksi as part of a probe into an alleged $2 billion fraud at state-run Punjab National Bank (PNB), two sources said.The CBI named Choksi, three of his companies and four employees working at those companies in a charge sheet filed at a Mumbai court on Wednesday.

On Monday, it had filed charges against 22 people including jeweller Nirav Modi, former PNB chief Usha Ananthasubramanian, two of the bank’s executive directors, and three companies belonging to Nirav Modi.The charges filed on Monday are the first formal ones to be filed in the sprawling case that has stunned investors, shaken the Indian banking sector and prompted a major regulatory crackdown.

PNB, India’s second-largest state-run bank, said in February that the two jewellery groups led by Modi and his uncle Choksi had defrauded it by raising credit from overseas branches of other Indian banks using illegal guarantees issued by rogue PNB staff over several years.