The Central Bureau of Investigation (CBI) on Tuesday late night, arrested a General Manager rank officer, Rajesh Jindal, of the Punjab National Bank (PNB) in connection with the Rs 11,000 crore alleged PNB-Nirav Modi scam.
Jindal, who was the Branch Head at PNB Brady House branch, Mumbai, during August 2009 to May 2011, started the practice of issuing the letters of understandings (LoUs) without sanctioned limits to Nirav Modi Group firms.
The CBI took Jindal into custody first, and later after questioning, arrested him.
An LoU is a guarantee which is given by the bank issuing it to the Indian banks having branches abroad to grant a short-term credit to the applicant. In case of any default, the bank which has issued the LoU is liable to pay the credit giving bank, along with the imposed interest.
Rajesh Jindal is presently posted as the General Manager Credit at the PNB Head Office in the national capital New Delhi.
Earlier on Tuesday, the CBI questioned 10 other officers including Jindal.