At least one Punjab National Bank official received gold and diamonds as bribes from Nirav Modi, the businessman accused of entanglement with the US$2 billion fraud case, Reuters reported, citing statements of federal police to a court.
The fraud case, one of the biggest to hit an Indian bank, involves fake letters of guarantees that officials at the bank's Mumbai branch issued to companies linked to Modi and his uncle Mehul Choksi.
India's Central Bureau of Investigation said Yashwant Joshi, a foreign exchange manager in the bank's Mumbai branch, admitted to receiving two gold coins and a pair of gold and diamond earrings from Modi. The jewelry have been retrieved from Joshi's house.
The bribes indicate that Modi colluded with the beneficiary accused persons to defraud the bank, CBI inspector D. Damodaran said in a court filing.
Meanwhile, another Mumbai court also issued non-bailable warrants against Modi and Choksi, Reuters reported, citing Indian TV channels.
The warrants come after an appeal by the Enforcement Directorate, or ED, an India-based body focused on forex and money laundering offenses. The ED believes Modi is presently in Hong Kong, but Indian officials are yet to track him.
Allahabad Bank, UCO Bank, Union Bank of India and State Bank of India are among the lenders that have granted loans to companies linked to Modi and Choksi against letters of undertakings issued by Punjab National Bank.
The CBI has already arrested several bank officials in connection with the case, including the bank's former internal chief auditor Bishnubrata Mishra.
The Indian government also ordered the bank to conduct an audit into why it did not detect the collusion earlier.
