The Central Bureau of Investigation (CBI) has officially challenged the discharge plea submitted by Manoj Kharat. Kharat, a former single-window operator, is implicated in the high-profile Punjab National Bank (PNB) fraud case linked to Nirav Modi, a fugitive economic offender. The CBI’s opposition comes amid ongoing legal scrutiny of the fraud, which has revealed systemic banking irregularities.
Details of the PNB Fraud Case
The allegations suggest that Kharat collaborated with Gokulnath Shetty, a retired deputy manager at PNB’s Brady House branch in Mumbai. Together, they allegedly issued numerous Letters of Undertaking (LOUs) that bypassed essential banking protocols. These practices included neglecting cash margins, sanctioned limits, and proper documentation.
Furthermore, the investigation uncovered that these transactions were executed on behalf of Nirav Modi’s companies, such as Diamond RUS, Stellar Diamond, and Solar Export. Initial investigations disclosed approximately 150 fraudulent LOUs totaling around ₹6,498 crore, reported by PNB to the CBI on February 13, 2018. This impact was further magnified as it was revealed that from 2011 to 2017, a total of 1,214 LOUs amounting to approximately ₹23,780 crore were issued by bank officials involved in the scheme.
Kharat’s Defense Claims
Kharat’s discharge plea argues that he was unaware of Shetty’s misconduct and contends that he acted solely under the direction of his deputy manager. His legal team claims that he is being unfairly scapegoated in this case. According to the plea, he did not gain financially from the alleged criminal activities.
- Kharat’s plea highlights that he merely executed clerical tasks under supervision.
- It alleges that the unauthorized practice of issuing LOUs was a longstanding procedure predating Kharat’s employment in 2014.
- The ongoing legal proceedings will continue, with the next hearing set for June 19.
As this case unfolds, it continues to draw attention to the regulatory failures within major banking institutions. The CBI remains committed to pursuing justice in relation to the significant financial losses incurred by PNB.
