Lookout circulars issued against 10 executives

NEW DELHI: The immigration department has issued “lookout circulars” against at least 10 executives of firms linked to fugitive jewellers Nirav Modi and Mehul Choksi, after a CBI request to stop them from leaving the country.

A CBI (Central Bureau of Investigation) official, who does not want to be identified, said on Monday immigration authori- ties were contacted as the agency suspects some of the executives may have left the country already to avoid prosecution in the ₹11,400-crore Punjab National Bank fraud.

According to the official, the agency questioned PNB executive director KV Brahmaji Rao for the third day. Rao and three other general manager-rank officials were questioned at the CBI’S Mumbai office.

The PNB has accused Modi, his uncle Choksi and their firms of defrauding the bank of ₹11,400 crore. The alleged fraud occurred as a PNB deputy manager, with the assistance of one or more colleagues, issued over 100 fraudulent letters of undertaking, essentially guarantees sent to other banks so that they would provide loans to a customer.

The CBI and ED (Enforcement Directorate) have registered two cases each, and are investigating the role of PNB officials in the fraud.

“The statutory auditors of the agency were also questioned by the agency in order to understand how the fraud remained undetected for almost seven years,” the CBI official said.

The agency has written to chief vigilance officers of five banks for sharing details of Nostro accounts of the PNB held at their overseas branches. Money to importers was released from the Nostro accounts on the basis of letters of undertaking and foreign letters of credit.