Gokulnath Shetty, former Punjab National Bank (PNB) manager, cleared about 13,000 transactions of Rs one crore and more in seven years, said the report prepared by bank's four-member team of executives, as reported by The Times of India.

Shetty, a key accused in the $2 billion fraud involving diamond merchants Nirav Modi and his uncle Mehul Choksi, was permitted to use unlimited powers in clearing transactions though he was entitled to pass transactions only between Rs 10 lakh and Rs 25 lakh, the report said.

According to The Times of India report, if the daily monitoring system reports were checked by Shetty's colleagues, the fraud could have been detected.

The report suggested various red flags were ignored as PNB probe team found Shetty sent at least 35 emails to the bank’s treasury division at its Delhi headquarters “outside” normal working hours — from 8 PM to 9.30 AM. Similarly, at least 22 of these emails were sent by him using his personal email ID.

The CBI has alleged that in May 2017, Shetty, a key conduit of Nirav Modi and Mehul Choksi, had issued 143 letters of undertaking (LoUs), which are like guarantees, for payments worth 3,000 crore to the former.