Punjab National Bank(PNB) Fraud: Nirav Modi Escaped

Punjab National Bank(PNB) Fraud: Nirav Modi escaped from the authorities. Another fraud similar to Vijay Mallya. Follow poutstation for latest news, gossips and much more.

Posted 6 years ago in Regional News, updated 6 years ago.

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Male , Lives in India
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 India has witnessed another scam of thousands of crores which indicates the roots of corruption and theft which run deep into the grounds of our great nation. After six years of being involved in the many practices of corruption, PNB has finally been exposed and proves itself to be another surprising and a well-planned scandal.

India’s Punjab National Bank is the second largest public sector lender and has deeply affected our nation’s economy.  As of now, CBI has conducted 21 raids and 17 searches carried out by ED at the premises of Nirav Modi and his relatives, these researches revealed that the money was allegedly withdrawn from offshore accounts of various banks not only through insurance of fresh LOUs from Punjab National Bank but even renewal of old ones which is an illegal activity as per the knowledge of all its investigators.

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 This shocking and painful discovery also raises a lot of questions and doubts on the sincerity and work ethics of many other respectable officials as well. It all started on 29th January, when a PNB official from Mumbai filed a criminal complaint with India’s federal investigative agency against three companies and four people including billionaire jewelers like Nirav Modi and Mehul Choksi, the managing director of Gitanjali Gems Ltd, saying that they had defrauded the bank and caused a loss of Rs. 280 crore which is around $43.8 million.

It has been alleged that two junior employees at the Mumbai branch had helped the companies and the people managing them get ‘letters of undertaking’ (LOUs) from it without having a sanctioned credit limit or maintaining funds “on margin”. The LOUs used to obtain short term credit for overseas branches of other Indian banks. It was after having received the complaint, that the Central Bureau of Investigation (CBI) registered a preliminary case against the companies and the people named on 31st January and a detailed prob was underway immediately.

 PNB reported that on conducting further research it was revealed that the fraudulent and unauthorized transactions held at the Mumbai branch were of Rs. 11,400 crores in total. This disclosure is related to the facts and details of the earlier case filed.

The main question which arises is that how did the PNB fraud come into the light after six long years of concealment and fraud?

PNB said that on 16th January, the accused firms presented a set of import documents to the Mumbai branch and requested buyer’s credit to pay overseas suppliers. Since they had no pre-arranged credit limit, the branch officials asked the companies to put down the full amount as collateral so the bank could issue LOUs to authorize the credit on which the firms argued that they had used the facilities in the past without keeping any money on margin after which PNB scanned through the records and was unable to find any such records of the said transactions.

It was only after this event that the truth began unfolding and the huge and well planned fraud came into the light.

PNB has accused three companies- Solar Experts, Stellar Diamonds and Diamond R Us which belong to Nirav Modi who is worth $1.73 billion as per the Forbes rankings. As of now there is no trace of Nirav Modi and of those that were involved in this scam.


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