Mr. Modi and Mr. Choksi are the prime accused in the PNB fraud and have left the country. The CBI, in its remand application, said "Chitalia was evasive while responding to the questions put to him, regarding the case, modus operandi and other conspirators in the case".
The CBI has said that it was Chitalia himself in active connivance with Choksi who had ordered his juniors like Nitin Sahi, who are already arrested, to get the fake LoUs from PNB. "There was a look-out notice against him, hence the immigration officials detained him at the airport as soon as he arrived from Bangkok", an agency official said.
Taking the first step towards extraditing the fugitive jewelers, the special Prevention of Money Laundering Act (PMLA) court in Mumbai issued non-bailable warrant against Choksi and Modi in the past week. Special prosecutor A Limosin told the court that Chitalia reported directly to Choksi. "He knew fraudulently transactions and had tried to hide all the evidence", said public prosector A Limosin, representing the CBI.
These position PNB for sustained good performance and, going forward, generating positive market sentiment and market capitalisation gains, Jaitley said in a written reply to a Rajya Sabha question on the recent fraud at PNB.
Nirav Modi and Mehul Choksi are accused in the multi-crore scam that has rattled the country and economy. The accused PNB officials allegedly did not enter the instructions for these LoUs in their internal software to avoid scrutiny. An LoU is a guarantee which is given by an issuing bank to Indian banks having branches overseas to grant short-term credit to the applicant. So, the entire $2 billion exposure of the country's second largest bank PNB through LoUs issued in favour of Nirav Modi group firms will have to be booked as an NPA.