India’s Central Bureau of Investigation (CBI) has been questioning senior officers of the Bank of India, Axis Bank and Allahabad Bank, the Indian banks that disbursed funding to companies controlled by Nirav Modi and Mehul Choksi on the basis of Letters of Undertaking (LoUs) issued by the Punjab National Bank (PNB).
Modi and Choksi’s firms have allegedly defrauded the PNB of a collective ₹12,622 crore ($1.95 billion) by obtaining the LoUs fraudulently. There are reports warning that the final figure may rise to as much as $3.2 billion.
News agencies have reported that some five officers of the ranks of general manager and above have been quizzed by the CBI on how these LoUs were executed by their respective banks. These India-based officers were responsible for the Bank of India’s Antwerp branch and the Hong Kong branches of Axis Bank and Allahabad Bank. The reports indicated that more bank personnel might be questioned by the CBI.