The Presentation is prepared on the fraud case which happened at Punjab National Bank involving Gitanjali Gems Ltd. in the year 2018. The Presentation gives insights of the incident happened and how it is linked with violation of ethics in Indian ethos.

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PRIYAL GUPTA
A CASE OF ETHICAL VIOLATION
CRAFTED BY:

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• One of world’s largest branded jewelry retailers
• Founder & Managing Director: Mr. Mehul Choksi
• Founded in the year 1966
• It had 4000 stores & dominated Indian market by 50%
• Headquarters in Mumbai, Maharashtra
• Brands under Gitanjali: Nakshatra, D'damas, Gili, Asmi, Sangini,
Maya, Giantti, World of Solitaire and Shuddhi
• In 2018, Company got bankrupt & closed following PNB Fraud
AboutCompany
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• An Indian multinational & financial service company
• A Government owned bank headquartered in New Delhi
• Founded in the year 1894 at Lahore, Pakistan
• PNB, the first bank to start solely with Indian Capital in 1940
• At present, the bank has 180 mn customers, 12k+ branched &
13k+ ATMs
• In 2018, PNB detected Fraud of $1.4 billion by Gitanjali Group at
Brady House Branch, Mumbai
• In 2019, Punjab National Bank detected another fraud, worth $
533 million by Bhushan Power & Steel Ltd (BPSL).
AboutTheBank
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KEY PROPLE BEHINDTHESCAM
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Mehul Choksi
•Founder & MD of
Gitanjali Group
•Maternal uncle of
Nirav Modi
Nirav Modi
•Founder of
Diamond RU.S.,
Stellar Diamonds,
Solar Exports
•Prime accused
Ami Modi
•Wife of Accused
Nirav modi
Nishal Modi
•Brother Of Nirav
Modi
Gokulnath Shetty
•Retired Deputy
Manager, Punjab
National Bank
Manoj Kharat
•Clerk, Punjab National
Bank

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• Born to a Gujarati family on 27 February, 1971 and raised in
Belgium
• He is an diamond trader & prime accused in PNB fraud case
• He has been charged by Interpol & Government of India in
Criminal Conspiracy case, breach of trust, money
laundering, corruption etc
• He is been sued in State of California $ 4.2 mn defrauding
Log Angeles entrepreneur Paul Alfonso
• In 2018, Modi collapsed his 12000 Cr business and went for
bankruptcy protection in Manhattan, New York
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NIRAVMODI

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• The fraud occurred at PNBs Brady House Branch in Fort, Mumbai, 2018
• Modi exported rough diamonds worth crores from foreign countries
• Bank issued fraudulent LOU to Modi for 365 days without making provisions of
collaterals
• LOU: Letter of Undertaking- An assurance from one bank to other on behalf of
it’s customer for the repayment of the money
• Modi showed this LOU to Axis Bank, UCO Bank & Allahabad bank and also
Indian overseas bank to raise money to pay to suppliers
• Modi again requested PNB for LOU but bank refused and asked for collaterals
but Modi’s firm argued that no such money was kept on margin for the
previous LOU
• The PNB Employees scanned the previous records and found no transactions,
and last filed the complaint
• Nirav Modi then found in London & currently imprisoned at Wandsworth
Prison, UK
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THESCAMSTORY

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• Ethics are the morals & principles that an individual incorporates in
his/her life
• Ethics Dimension: Social Ethics (ethics of doing) & Individual ethics
(ethics of being)
• Upanishads & Bhagavad Gita emphasizes on inner motive of man, that
prompts the particular action
• Dharma (ethical behavior), synonymous to integrity & rightness,
Adharma (Unethical behavior), Deshdharma (duties towards nation)
• In Indian Ethos, Dharma is considered as the root of good conduct
and wealth is it’s branch
• Individual ethics: Man practicing truth, non-stealing, honesty, fairness,
transparency, lawful acts
• Nirav Modi & his supporters chose path of adharma & violated all the
ethics and duties they had towards oneself, society & the nation
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ETHICSCOLLAPSED

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• Nirav Modi: An unethical businessman
• Unethical Practice by PNB X Gitanjali: Breach of trust, dishonesty,
cheating, criminal conspiracy, breach of contract, no confidentiality,
poor management
• The impact: lost of customer trust, loss to economy, crack on bank’s
legacy, unemployment, violation of laws
• Law of Karma: “What you do will come back to you, either good or
bad”
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GITANJALIXPNB

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