PNB SCAM IN SHORT

2.  Banks are financial institute
 Banks accepts money in the form of Deposit from customer.
 In return banks offer safety and security of the money
deposited with them and offer some interest over it.
 They lend money to businessmen and other customer at higher
interest rate
 This Higher Interest rate is the Main source of Banks income.
 Banks also do investment in Government Bonds and Securities
on which they earn Interest and dividend.

3.  PNB was registered on 19 May 1894 under the Indian
Companies Act.
 It was founded by Dyal Singh Majithia
 It’s first office was in Anarkali Bazaar, Lahore, In present day
Pakistan.
 After partition PNB moved to India and closed all branches
from Pakistan.
 On 19 July 1969 The Government of India Nationalized PNB
with 13 other Major Commercial Bank.
 In February 2018 Punjab National Bank found itself in the
centre of one of the biggest fraud in the Indian Banking Sector.

4.  LOU is abbreviation for Letter of Undertaking
 Bank issues LOU to the high value customer.
 Banks becomes the guarantor of Customer whom they issues Letter of
Undertaking.
 Person with LOU can goes to other bank and ask for loan, Because Bank is taking
the guarantee of person others banks makes the loan issuing procedure easy for
the LOU Holder.
 In case person failed to pay back loan it becomes the responsibility of the LOU
issuing Bank to pay back all the loan with interest on it.
 Banks accept securities or collateral in exchange of issuing Letter of Undertaking,
banks also charges fees for the services for letter of Undertaking.

5.  Nirav Modi is a Wanted person in PNB Loan Scam and presently he is
on the run.
 CBI seeks the help of Interpol to arrest him.
 He is into Diamond Trading Business
 He is the founder and creative director of the Nirav Modi chain of
diamond jewellery retail stores, and is the Chairman of Firestar
International, the parent of the Nirav Modi chain, which has stores in
key markets across the globe.
 His property in India is sieged by Government agencies to recover the
amount of fraud done by him.
 Nirav Modi is in St Kitts right now, trying to get citizenship by
purchasing property there by the money he stolen from Indian People.

7.  LOU was issued by PNB bank, hence it is responsibility of Punjab national bank
to pay back all the loan with interest to other banks and party who gave credit to
Nirav Modi.
 Punjab National Bank can sell property of Nirav Modi if they are mortgage with
bank to recover losses.
 Government of India can take the help of Interpol to arrest Nirav Modi from
foreign land.
 Bank and GOI can talk with Nirav Modi to reach any deal so he can pay back the
loan amount in specific period of time.
 Bank will increase service charges and Government of India some taxes to recover
losses from common poor people who have nothing to do with this scam.