It was allegedly during Mr Jindal's tenure at the Brady House branch that the Letters of Undertaking (LoUs) to Nirav Modi's companies were issued. "During Mr Jindal's tenure at PNB's Brady House branch, the practice of issuance of LoUs without sanctioned limits to Nirav Modi group of firms had started," a CBI spokesman said.
Mr Jindal, who will be produced in court on Wednesday, is the highest profile bank officer arrested so far, CBI sources said. PNB has alleged that as far back as 2011, firms owned by Nirav Modi and Mr Choksi began receiving fraudulent LoUs from its Brady House branch that helped them to borrow money from overseas banks.
The Brady House branch in Mumbai, which is in the eye of the controversy, has claimed that it has nothing to do with the case says, news agency Reuters.
Late on Tuesday night, the investigative agency also arrested five senior executives of companies of Nirav Modi and Mehul Choksi. None of the companies have commented on the latest arrests but Mr Modi's lawyer told NDTV that arrests of Vipul Ambani, president, finance, at Firestar International, Kavita Mankikar, executive assistant and authorised signatory of the firms and Arjun Patil, senior executive of the Firestar Group, are shocking.
(With inputs from agencies)