PNB Fraud Case: CBI Arrests Gitanjali Group’s Top Executive Vipul Chitalia

The special court today remanded Vipul Chitalia of the Gitanjali Group to police custody till March 17 in connection with the Rs 12,700 crore Punjab National Bank fraud involving billionaire jeweller Nirav Modi.

The CBI court said custodial interrogation of Chaitalia, vice-president of banking operations at the group, is necessary to track the nexus between the various accused in the matter. Chaitalia is the main perpetrator in the crime along with promoter Mehul Choksi, the Central Bureau of Investigation's counsel said, informing the court that he had fled the country on Jan. 26.

Chaitalia was arrested at 11:30 a.m. at the Mumbai airport after the CISF intercepted him on his return from Bangkok. With this, the number of people arrested so far by the Central Bureau of Investigation in the matter rose to 19.

The CBI counsel said Chaitalia was looking after the entire banking operations of the Gitanjali group and was instrumental in preparing applications for fraudulent letters of credit in connivance with Gokulnath Shetty, former deputy manager at PNB, and others whose identity still remains unclear. He was instrumental in hiding the documents in this case, the agency said.

Modi and his companies obtained loans based on allegedly fraudulent guarantees issued by some of the employees of a Mumbai branch of PNB, according to the first information report filed by the CBI. Investigations are on and the Enforcement Directorate has seized both Modi and Choksi's assets.

The CBI court remanded Shetty to police custody till March 15 in the case against Choksi. He was arrested by the agency in the case filed against Modi case and was then sent to judicial custody.

The CBI today also questioned four PNB treasury officers, including a general manager and an assistant general manager.