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The Punjab National Bank Fraud Case relates to fraudulent letter of undertaking worth ₹12,000 crore (US$1.4 billion) issued by the Punjab National Bank at its Brady House branch in Fort, Mumbai; making Punjab National Bank liable for the amount.[1] The fraud was allegedly organized by jeweller and designer Nirav Modi. Nirav, his wife Ami Modi, brother Nishal Modi and uncle Mehul Choksi, all partners of the firms, M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamonds; along with PNB officials and employees, and directors of Nirav Modi and Mehul Choksi's firms have all been named in a charge sheet by the CBI.[2] Nirav Modi and his family absconded in early 2018, days before the news of the scam broke in India.
India's Enforcement Directorate has begun attaching assets of the accused and is seeking to immediate confiscation under the Fugitive Economic Offenders Ordinance.[3] Nirav is on the Interpol's wanted list for criminal conspiracy, criminal breach of trust, cheating and dishonesty including delivery of property, corruption and money laundering since February 2018.[4][5] In March 2019, Nirav was arrested in central London by UK authorities.[6]
The bank initially said that two of its employees at the branch were involved in the scam, as the bank's core banking system was bypassed when the corrupt employees issued LOUs to overseas branches of other Indian banks, including Allahabad Bank, Axis Bank, and Union Bank of India, using the international financial communication system, SWIFT. The transactions were noticed by a new employee of the bank.[7] The bank then complained to the CBI, who is currently investigating the scam apart from ED and Reserve Bank of India.CBI named key officials Usha Ananthasubramanian, former CEO of PNB, executive directors KV Brahmaji Rao and Sanjiv Sharan in a chargesheet holding them responsible for failure to implement several circular and caution notices issued by the RBI regarding the reconciliation of SWIFT messages and core banking systems.[8]
- ^ "PNB will honour commitments to banks in LoU case". The Economic Times. 28 March 2018. Retrieved 1 June 2018.
- ^ "PNB scam: CBI to file chargesheet against 19 accused by May 15". India Today. 2 May 2018. Retrieved 1 June 2018.
- ^ "PNB fraud: ED to seek 'immediate confiscation' of Nirav Modi's assets under Fugitive Economic Offenders Ordinance - Firstpost". www.firstpost.com. Retrieved 1 June 2018.
- ^ "- INTERPOL". www.interpol.int. Archived from the original on 10 July 2018. Retrieved 31 August 2018.
- ^ "- INTERPOL". www.interpol.int. Archived from the original on 10 July 2018. Retrieved 30 August 2018.
- ^ "Billionaire celebrity jeweller held in UK". 20 March 2019 – via www.bbc.co.uk.
- ^ "A freshly appointed official first noticed the fraud at Punjab National Bank". Moneycontrol. Retrieved 15 February 2018.
- ^ Sahgal, Ram (22 May 2018). "Former MD of PNB was aware of Nirav Modi fraud, says CBI". The Economic Times. Retrieved 1 June 2018.