PNB fraud: Judicial custody of Vipul Ambani, 10 others extended

New Delhi: A special Central Bureau of Investigation (CBI) special court on Wednesday extended the judicial custody of Gokulanath Shetty, Vipul Ambani and nine other accused till April 11 in connection with the Rs 12,700 crore Punjab National Bank (PNB) fraud.

Former Punjab National Bank Deputy Manager Shetty, who was already in judicial custody along with five other accused for colluding with celebrated jeweller Nirav Modi in cheating the bank, was arrested by the CBI on March for conniving with Mehul Choksi for getting loans approved for Gitanjali Gems.

Previously, on February 22, the CBI found out the Head of Finance Department of Firestar Group of Companies of Nirav Modi, Vipul Ambani, was fully aware of the fraudulent and illegal Letter of Undertakings (LoUs) in connection with the case.

The PNB had lodged two financial fraud complaints of Rs 11400 crore and Rs 280 crore against Nirav Modi, his family members and Mehul Choksi, owner of Gitanjali Gems.

The Punjab National Bank detected a 1.77 billion dollar scam, in which jeweller Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders.

The scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies.

Meanwhile, the PNB filed a second complaint with the Central Bureau of Investigation (CBI) on February 13.

The CBI had received the complaint from the PNB on January 28 and a case was registered in the case on January 31. (ANI)