PNB scam and Vikram Kothari scam

1. Prepared By :Riddhi Kachadiya
Kirti Kamani

3. PNB Scame

4. Who is Nirav Modi?
• Nirav Modi, the billionaire in the middle of this
controversy, is a luxury diamond jewellery
designer who was ranked 85 in the Forbes list of
India’s billionaires in 2017.

5. Forbs MagaziNe raNk

6. • His designs have been worn to the oscars by
“Hidden Figures” star Taraji P Henson and to the
Golden Globes by Dakota johnson, among
others Actor priyanka chopra is the Brand
ambassador.

7. What’s the PNb Fraud?
• The PNB informed that the Bombay stock
exchange that it had detected ‘fraudulent and
unauthorised transactions’ amounting to RS.
11,400 crores at its Brady House branch in
Mumbai.

8. • At the 5th
feb. 2017 estimated fraud amount was 280
crors.
• Because of fake LOU this fraud are arising.

9. Ami Modi Nishal Modi
Mehul Choksi

10. PNB Officers
Gokulnath shetty Rakesh Jindal

11. sWifT cOde ?
• Society for worldwide interbank financial
Telecommunication code.
• It is use for An International recognized
identification code for banks around the world.
• SWIFT code are mostly used for international
wire transfer and are comprised of 8 or 11
alphabetic characters.

12. • As per the FIR, five of the SWIFT messages (SWIFT is a
messages network used by the many of financial
institutions to security transmit instruction) were issued
to Allahabad Bank in Hong Kong and three braches to
Axis bank in Hong Kong.

13. WhaT Will haPPeN NOW
• One of the worrying aspects of the scam is that in its
statement, PNB says that based on the fraudulent
transactions, other banks appear to have advanced
money to the customers abroad.
• However, the Rs.11400 crores scam comes at a time
when the central government is attempting to provide a
breather to ailing PSBs, having announced a Rs.2.11 lack
crore capital infusion to the second in October 2017.

14. • In 2017 year, PNB will receive Rs. 5,473 crores as
capital infusion from the government through a mix of
recapitalisation bonds and direct infusions.

16. Who is Vikram kothari
Vikram Kothari is the chairman and MD of
kanpur-based Rotomac Global private Limited, which is
embroiled in a controversy for alleged defaulting on loans
worth over RS 800 crore taken from different state-owned
banks.

17. What is the issue
• Kanpur based Rotomac Global has composed a
scam of a Rs. 3695 crore by means of willful loan default
to multiple bank.

18. • In which based on complaint field by BOB, CBI
has registered a case against 3 directors of Rotomac
and other bank staff.

20. WiLLFuL DeFauLter
Vikram Kothari was declared as a ‘WILLFUL
DEFAULTER’ by Bank of Baroda in February last year. He had
contested the tag in Allahabad High Court and received an order
in its favor but failed to pay the loans.

21. siphoning oF FunDs??
• If any funds borrowed from banks are utilized
for purpose unrelated to the operation of the borrower, to
the detriment of the financial health of the entity or of the
lender.

22. • Rotomac was working for interest rate differential in
local and foreign currency.
• The agency registered the case under the prevention of
money Laundering (PMLA), after studying CBI FIR.

23. Case Progress??
• Immediately after registering the case, the CBI carried
out searches at three location in Kanpur which included
Kothari’s residence and office premises.

24. • The official said the credit disburse and sanctioned to the
company was utilized for the purpose other than
executing export order.
• Round – tripping of black money.

25. • The Income Tax Department had also attached 14 bank
accounts of the pen manufacturer as part of its tax
evasion.
• The Enforcement Directorate had notified all the land,
sea, and airports in the country to prevent the exit of
Kothari and his Family member from India.

26. What to learn from this
inCident??
• The need for strengthen corporate governance by
infusing greater professionalism, transparency and
accountability in PSBs has been routinely repeated.
• Securing their independence from political interference
and enforcing strict accountability for gaps are also very
important.