The CVC report said it had been dealing with issues related to the core banking system, which was not updated by PNB officials in the case of loans given to Modi and Choksi, human resource management systems (HRMS) and projects of development of IT infrastructure in the banking sector.
The bulk of these so-called shell structures have been traced back to Hong Kong and Dubai.
Hong Kong has its own independent system where China has its say only in defence and external affairs.
The Income Tax Department will reportedly initiate legal action against diamantaire Nirav Modi, who is wanted in connection with the Rs 13,500 crore Punjab National Bank (PNB) fraud, under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The CBI has already registered two FIRs - one on January 31 and another in March against Nirav Modi, his relative Mehul Choksi of Gitanjali Gems and others for allegedly defrauding the PNB of about Rs 11,400 crore.
The special court of national investigation agency allowed the application of CBI for the issuance of NBWs against both accused involved in the PNB scam.
CWG 2018: Weightlifting gold rush continues, Punam Yadav claims 5th for India
The final attempt was especially messed up as he struggled to keep up with the one-minute he had to complete the lift. England global Sarah Davies had to satisfy with the second spot as she claimed silver medal with 217 kg lift.
Several bank employees have been booked for collusion in the case. In case of default, the bank issuing the LoU has to pay the liability to the credit-giving bank, along with interest.
After questioning the PNB top brass, the agency has now shifted its focus to the policies which could have been exploited by Modi and Choksi to further their alleged cheating. However, he blamed Rajesh Jindal, who was GM of PNB's Brady House branch between August 2009 and May 2011, for directing the fraud.
Nirav Modi is the prime accused in the Dollars 2 billion PNB bank fraud case and is believed to in Chinese territory.
An LoU is a guarantee which is given by an issuing bank to the Indian banks that have branches overseas to grant a short-term credit to the applicant.
The agency had also told them to contact the nearest Indian embassy to get temporary travel documents, but they refused to do so. However, Modi and his associates fled the country before the notices were issued.