Intensifying its crackdown in the alleged multi-crore PNB fraud case, the CBI arrested Vipul Chitalia, the vice president of Gitanjali Group of Companies, at Mumbai airport on Tuesday. It is alleged that he was responsible for handling the unauthorised LOUs and FLCs and maintaining contact with the bank officials. Chitalia allegedly escaped to Dubai with Mehul Choksi in the first week of January before the matter was reported to CBI. He returned to India today when he was detained. He was produced in the court and remanded to police custody till 17th of this month. In addition, Gokulnath Shetty, then Dy Manager (Retd ) who was in Judicial Custody has now been arrested in Gitanjali group case and remanded to police custody till 15th of this month. In addition to above, CBI has also questioned four PNB Treasury officers including GM and AGM rank officers. Further investigation is continuing. The Rs 12,636-crore fraud was allegedly perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems. It is alleged that Choksi and Modi got Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) of Rs 12,636 crore issued in favour of foreign branches of Indian banks based on fraudulent claims. An LoU is a guarantee which is given by an issuing bank to Indian banks having branches abroad to grant short-term credit to the applicant. With PTI inputs
