Mumbai, Apr 5 (PTI) A special court here today remanded former Punjab National Bank (PNB) official and key accused in the alleged multi-crore fraud case Gokulnath Shetty to Enforcement Directorate’s custody till April 11.
Shetty was arrested today by the ED after the Prevention of Money Laundering Act (PMLA) court on April 3 allowed the agency’s plea for his custody in connection with the case in which dimantaires Nirav Modi and his uncle Mehul Choksi are prime accused.
“He was remanded to ED’s custody till April 11,” an ED official said.
Shetty was earlier arrested by the CBI, probing the over Rs 13,500-crore fraud, in February. He was later remanded in judicial custody.
While seeking Shetty’s custody, special prosecutor Hiten Venegoankar today told judge MS Azmi that Shetty apparently played a key role in the execution of the illegal transactions and was “a key conspirator and actor in laundering of money”.
As Modi and Choksi had left the country, “it is imperative for the ED to examine the accused in custody and confront him with the documents and statements of the other suspected persons,” stated the ED application.
The agency is probing the money laundering aspect of the scam, which involves fraudulent issuance of letters of undertaking (LoUs) to firms owned by Modi and Choksi by some PNB officials.
According to the CBI, the firms owned by Modi and Choksi obtained the LoUs fraudulently in connivance with some PNB officials which were used to obtain credit from overseas banks, causing a loss of over Rs 13,500 crore to PNB.
This is published unedited from the PTI feed.