The CBI has examined Punjab National Bank’s Executive Director K V Brahmaji Rao for the second day today in connection with the Rs 11,400 crore PNB scam allegedly involving jewelers Nirav Modi and his uncle Mehul Choksi, officials said.
Rao, who started his career in banking 35 years ago as a probationary officer in Vijaya Bank, handled the Mumbai zone, among others, in the bank where the crime was allegedly detected, they said.
The officials said several other officers of the bank were being questioned by the agency as well.
They said the examination was focussed on understanding how the crime was detected by the bank and other procedural issues and their violations. They were not being treated as accused, the officials said.
It was alleged that fraudulent guarantees worth Rs 11,400 crore were issued to Modi and Choksi through 293 Letters of Undertakings.
Rao is in charge of the integrated risk management division, credit, monitoring of accounts with exposure of above Rs 50 crore, including stock audit and Portfolio Management Service, industrial rehabilitation and action taken on borrowed frauds reported from Mumbai, where the alleged fraud took place.
The accused have been booked under Indian Penal Code sections relating to criminal conspiracy, cheating, forgery and using forged documents as genuine, besides criminal misconduct by a public servant, under the Prevention of Corruption Act.