The Central Bureau of Investigation (CBI) on Wednesday submitted a reply in court strongly opposing the discharge plea filed by Manoj Kharat, a former single-window operator accused in the multi-crore Punjab National Bank (PNB) fraud case. Fugitive economic offender Nirav Modi is the main accused in this case. In its reply, the CBI submitted that Kharat was aware of the illegalities involved. Kharat is currently out on bail. The plea is scheduled for hearing on June 19.
Background of the Case
The CBI had earlier alleged that Gokulnath Shetty, a retired deputy manager, and Manoj Kharat, who served as a single-window operator at PNB's Brady House branch in Mumbai, issued several fraudulent Letters of Undertaking (LOUs). The scheme purportedly involved bypassing all standard banking protocols, including the requirement for sanctioned limits, cash margins, and proper documentation. Transactions were deliberately kept out of the bank's core banking system (CBS) to avoid detection. It was alleged that these LOUs were issued on behalf of Nirav Modi-owned entities, including Diamond RUS, Stellar Diamond, and Solar Export.
Further investigation revealed a significantly larger fraud. PNB informed the CBI on February 13, 2018, that Shetty, in conspiracy with others, had issued 150 fraudulent LOUs totaling approximately Rs 6,498 crore before his retirement in 2017, causing wrongful loss to the bank. Ultimately, the investigation uncovered that between 2011 and 2017, a total of 1,214 LOUs amounting to approximately Rs 23,780 crore were fraudulently issued by bank officials.
Discharge Plea Arguments
The discharge plea, submitted by advocate Asit Chaware, argued that Gokulnath Shetty was solely responsible for entries in the SWIFT/CBS system and that Kharat had no knowledge of Shetty's illicit practices. The plea also stated that Kharat was not a beneficiary in the alleged offense and did not receive any financial gain. It claimed, "The present accused has merely acted as a clerk under the complete supervision of the deputy manager... He had typed as maker of SWIFT messages under the guidance of his deputy manager and unnecessarily he has been made a scapegoat in this alleged offense." Additionally, the plea submitted that the practice of issuing LOUs without limits or 100% margin was prevalent at the Brady House branch even before 2011, prior to Kharat's appointment in 2014.
The court will hear the matter on June 19, where the CBI's opposition will be considered.
