PNB fraud: Rs 45 billion in LoU scam diverted to Choksi firms, says CBI

CBI found that funds received through fraudulent LoUs travelled through various banks to reach the beneficiary, reveals source

In its probe of the money trail in the Rs 127-billion letters of undertaking (LoU) fraud in Punjab National Bank (PNB), the Central Bureau of Investigation (CBI) has found that Rs 45 billion was diverted to the Mehul Choksi group of firms. 

Prima facie evidence showed that the transactions had been routed through shell firms. “We have come across a series of connected financial transactions and exchange of funds between Choksi and Modi companies,” said an investigating officer.

The probe was underway, and the agency was yet to get the entire information of Nirav Modi’s operations overseas to establish the entire