PNB Bank Fraud Scam details, loophole details

Punjab National Bank Fraud Scam details, Letters of Undertaking (LoU) loopholes in banking system details

India’s second largest public sector bank, Punjab National Bank (PNB) on 13 February, reported to the CBI, that it had identified Rs 11,400 crores (about USD 1.77 billion) scam involving billionaire diamantaire Nirav Modi.

PNB complaint CBI, that Nirav Modi apparently acquired fraudulent Letters of Undertaking (LoUs) from one of its branches in Mumbai to ensure overseas credit or loans from other Indian banks and lenders.

PNB till now has suspended over 18 employees, in a conspiracy to the fraud including PNB staffers Gokulnath Shetty and Manoj Kharat are considered as the main suspect in steering fraudulent loans.

As per the report, CBI along with the Enforcement Directorate (ED) continues to raid properties linked to Nirav Modi including his homes, offices in Mumbai, Delhi &Surat on 15th February 2018.

As per CBI officials, Nirav Modi and his family fled India in the first week of January, before the first complaint was filed.

As per source, three other jewelers, Gitanjali, Ginni and Nakshatra, are under the scanner with CBI and ED looking at their arrangements with various banks and end use of money,

CBI also registered an FIR against the MD of Gitanjali Group of companies, Mehul Choksi (Nirav Modi’s Uncle) who also fled away out of India just after Nirav did.

Passport Issuing Authority has suspended the validity of Modi’s and his partner Choksi’s passports.

At present, ED has conducted about 39 raids across the country and assets including diamonds, gold and jewelry etc. A total worth of about Rs 5,670 crores has been seized so far.

PNB Fraud Scam has also added spark to the opposition parties with heated comments on current NDA Government.