Mumbai: The Central Bureau of Investigation (CBI) has expanded its probe into the ₹13,578 crore Punjab National Bank (PNB) fraud involving fugitive diamantaire Mehul Choksi by naming four additional accused in the case. A Special CBI Court has taken cognisance of the supplementary chargesheet and issued summons to all four. The newly named accused include Bishnubrata Mishra, the then Internal Chief Auditor of PNB’s Brady House branch, along with three alleged associates of Choksi—Jayesh Indravadan Shah, Ajit Kantilal Bheda, and Deepen Chandravadan Shah.
Special Judge S.K. Karhale observed that the supplementary chargesheet contained sufficient prima facie evidence indicating that the four accused had conspired with individuals already chargesheeted in the case to commit offences related to the bank fraud. The court also noted that the mandatory prosecution sanction had been obtained for Bishnubrata Mishra, the only public servant among the newly arraigned accused.
The case dates back to 2018, when Mehul Choksi fled India. In February that year, the CBI registered an FIR against Choksi, his Gitanjali Group companies, several PNB officials, and others. During the investigation, the agency found that entities controlled by Choksi had allegedly defrauded PNB of ₹7,080.86 crore. In addition, these companies had availed credit facilities from a consortium of 32 banks, which reported outstanding dues of approximately ₹5,099.74 crore as of December 31, 2017.
According to the CBI, between 2011 and 2017, fraudulent and unauthorised Letters of Undertaking (LoUs) were issued on behalf of Gitanjali Group companies. These LoUs enabled the firms to obtain buyers’ credit from overseas banks despite allegedly violating established banking procedures, resulting in massive financial losses to the public sector lender.
The supplementary chargesheet alleges that the four newly added accused conspired with previously chargesheeted individuals to facilitate the issuance of 118 fraudulent and unauthorised LoUs in 2015 in favour of overseas banks for Gitanjali Group entities. The transactions covered under these LoUs were valued at approximately ₹21.87 crore. Investigators allege that the companies had no sanctioned credit limits, yet LoUs were issued in their favour.
The CBI has further alleged that in 2016, the accused facilitated the issuance of 116 additional fraudulent LoUs for Gitanjali Group companies, including Asmi Jewellery India Ltd., Gili India Ltd., Gitanjali Exports Corporation Ltd., and Nakshatra Brands Ltd. According to the agency, these LoUs were issued without sanctioned credit limits, without the mandatory 110% cash margin, and without recording the transactions in PNB’s core banking system, thereby enabling the companies to obtain fraudulent buyers’ credit from overseas lenders.
In its order, the court observed that the available material prima facie indicated that the accused had conspired to facilitate fraudulent LoUs and amendments under Foreign Letters of Credit, leading to the misuse of bank funds. On this basis, the court decided to proceed with criminal proceedings against the four accused.
The PNB fraud involving Mehul Choksi and his nephew Nirav Modi is regarded as one of India’s largest banking frauds. During the same period, Nirav Modi allegedly caused a separate loss of ₹6,498 crore to PNB before fleeing the country. With the inclusion of four additional accused, investigators are now examining the broader conspiracy, the role of bank officials, and the financial trail behind the fraudulent transactions in an effort to bring all those allegedly responsible for the high-profile banking scam to justice.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
