Nirav Modi, a billionaire jeweler, allegedly defrauded Punjab National Bank of $1.77 billion through fraudulent letters of undertaking. The scam was conducted by issuing LOUs without collateral or making proper entries in the bank's system. This allowed Modi's companies to raise loans from other banks. When PNB asked for collateral later, the fraud was discovered. PNB has filed criminal complaints and the CBI is investigating while Modi remains at large abroad. The bank and government are taking actions to recover losses and arrest those involved in the large scale fraud.
Punjab National Bank Fraud (Nirav Modi Scam) ppt presentation slideshareFatema Tandiwala
A case study presentation on Punjab National Bank scam (Nirav Modi)
India's second largest state-owned lender Punjab National Bank disclosed on Feb. 14, 2018 that it was the victim of the country’s largest bank fraud.
PNB revealed that fraudulent transactions by billionaire jeweler Nirav Modi and related entities amounted to $1.77 billion or over Rs 11,400 crore.
The key accused in the case were jeweler and designer Nirav Modi, his maternal uncle Mehul Choksi, and other relatives and some PNB employees.
Nirav Modi and his relatives escaped India in early 2018, days before the news of the scam became public.
PNB scam has been dubbed as the biggest fraud in India's banking history.
Neerav Modi, a prominent figure in the corporate world, gained notoriety for his involvement in one of the most infamous corporate scams in India. As a diamond merchant and the founder of Firestar Diamond, he orchestrated a multi-billion-dollar fraud that shook the financial landscape. Modi's fraudulent activities came to light in 2018 when Punjab National Bank disclosed unauthorized transactions amounting to over $2 billion. This elaborate scam involved the issuance of fraudulent letters of undertaking, allowing Modi and his associates to obtain credit from foreign branches of Indian banks. The Neerav Modi corporate scam raised concerns about regulatory oversight, corporate governance, and the need for stricter measures to prevent such financial misappropriations.
Punjab National Bank Fraud (Nirav Modi Scam) ppt presentation slideshareFatema Tandiwala
A case study presentation on Punjab National Bank scam (Nirav Modi)
India's second largest state-owned lender Punjab National Bank disclosed on Feb. 14, 2018 that it was the victim of the country’s largest bank fraud.
PNB revealed that fraudulent transactions by billionaire jeweler Nirav Modi and related entities amounted to $1.77 billion or over Rs 11,400 crore.
The key accused in the case were jeweler and designer Nirav Modi, his maternal uncle Mehul Choksi, and other relatives and some PNB employees.
Nirav Modi and his relatives escaped India in early 2018, days before the news of the scam became public.
PNB scam has been dubbed as the biggest fraud in India's banking history.
Neerav Modi, a prominent figure in the corporate world, gained notoriety for his involvement in one of the most infamous corporate scams in India. As a diamond merchant and the founder of Firestar Diamond, he orchestrated a multi-billion-dollar fraud that shook the financial landscape. Modi's fraudulent activities came to light in 2018 when Punjab National Bank disclosed unauthorized transactions amounting to over $2 billion. This elaborate scam involved the issuance of fraudulent letters of undertaking, allowing Modi and his associates to obtain credit from foreign branches of Indian banks. The Neerav Modi corporate scam raised concerns about regulatory oversight, corporate governance, and the need for stricter measures to prevent such financial misappropriations.
1) 11400 Crores Fraud
2) Nirav Modi, the billionaire jeweler who along with others scammed Punjab National Bank (PNB) of over 11400 crore’s has fled the country.
3) Apparently Nirav modi spotted in which placeWE DON’T KNOWBut What exactly is this scam?
4) The CBI has registered a case against Nirav Modi on January 29. Punjab National Bank registered a case against Nirav Modi, His Brother Neeshal & His Uncle Mehul Choksi on February 13.
5) The Bank initially reported a scam of rupees 280 crores. But it was later realized to be rupees 11400 crores. This is a lot of money. So how does one get away with a scam of such magnitude? Possibly it is one of the biggest in Indias’s banking history.
6) Nirav Modi is an importer of diamonds. Basically importers prefer to take loans in foreign currencies as interest rates on that are lower. In this case a loan that is taken from any overseas bank guaranteed by PNB. Then what Modi had to do was approach PNB & ask for buyers credit?In order to do this PNB had to issue a “letter Of Undertaking” to an overseas bank. Basically LoU guarantees an overseas bank that if it gives money for a specified period to identified by the home bank (in this case PNB) then the home bank will assure that the money will be returned to the overseas bank.
7) Most of these overseas banks are Indian Banks with foreign branches. So the overseas bank directly give to loan PNB not Nirav Modi. An account has to create by PNB called a NOSTRO account where the overseas bank gives the loan.
.
.
.
.
.
More.........
Satyam and Nirav Modi Scam ( case study) by Karan SetiaKaran Setia
This presentation is about the complete case study of two of the biggest scams in the Indian banking and Stock Market History.
Nirav Modi, a diamantaire how he got famous with his links and fooled the Indian banking system with the help of his connections.
Satyam Computers Stock Market scam is still the biggest scam in the Indian history again bypassing with the loopholes in the Indian system
1) 11400 Crores Fraud
2) Nirav Modi, the billionaire jeweler who along with others scammed Punjab National Bank (PNB) of over 11400 crore’s has fled the country.
3) Apparently Nirav modi spotted in which placeWE DON’T KNOWBut What exactly is this scam?
4) The CBI has registered a case against Nirav Modi on January 29. Punjab National Bank registered a case against Nirav Modi, His Brother Neeshal & His Uncle Mehul Choksi on February 13.
5) The Bank initially reported a scam of rupees 280 crores. But it was later realized to be rupees 11400 crores. This is a lot of money. So how does one get away with a scam of such magnitude? Possibly it is one of the biggest in Indias’s banking history.
6) Nirav Modi is an importer of diamonds. Basically importers prefer to take loans in foreign currencies as interest rates on that are lower. In this case a loan that is taken from any overseas bank guaranteed by PNB. Then what Modi had to do was approach PNB & ask for buyers credit?In order to do this PNB had to issue a “letter Of Undertaking” to an overseas bank. Basically LoU guarantees an overseas bank that if it gives money for a specified period to identified by the home bank (in this case PNB) then the home bank will assure that the money will be returned to the overseas bank.
7) Most of these overseas banks are Indian Banks with foreign branches. So the overseas bank directly give to loan PNB not Nirav Modi. An account has to create by PNB called a NOSTRO account where the overseas bank gives the loan.
.
.
.
.
.
More.........
Satyam and Nirav Modi Scam ( case study) by Karan SetiaKaran Setia
This presentation is about the complete case study of two of the biggest scams in the Indian banking and Stock Market History.
Nirav Modi, a diamantaire how he got famous with his links and fooled the Indian banking system with the help of his connections.
Satyam Computers Stock Market scam is still the biggest scam in the Indian history again bypassing with the loopholes in the Indian system
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
2. DEFINITION UNDER LAW
SECTION 17
ACCORDING TO SECTION 17 FRAUD MEANS AND INCLUDES
ANY OF THE FOLLOWING ACTS
COMMITTED BY A PARTY TO A CONTRACT OR BY ANY ONE
WITH HIS CONNIVANCE OR BY HIS AGENT WITH INTENT TO
DECEIVE ANOTHER PARTY THERETO OR HIS AGENT OR TO
INDUCE HIM TO ENTER INTO CONTRACT:
(A) A SUGGESTION AS TO FACT OF THAT WHICH IS NOT TRUE
BY ONE WHO DOES NOT BELIEVE IT TO BE TRUE
(B) AN ACTIVE CONCEALMENT OF A FACT BY ONE HAVING
KNOWLEDGE OR BELIEF OF THE FACT.
(C) ANY OTHER ACT FITTED TO DECEIVE
(D) A PROMISE MADE WITHOUT ANY INTENTION OF
PERFORMING IT
3. PNB SCAME(29 JAN 2018)
• ON 29TH JAN,2018, PNB (PUNJAB NATIONAL BANK) FILED A
CRIMINAL COMPLAINT WITH INDIA`S FEDERAL INVESTIGATIVE
AGENCY AGAINST THREE COMPANIES AND FOUR PEOPLE,
INCLUDING BILLIONAIRE JEWELER NIRAV MODI AND HIS UNCLE
MEHUL CHOKSI, THE MANAGING DIRECTOR OF GITANJALI
GEMS, SAYING THEY HAD DEFRAUDED PNB AND CAUSED A
LOSS OF 2.8 BILLION RUPEES ($43 MILLION).
• IN A REGULATORY FILING ON FEB. 14, THE BANK UPDATED
THE SUM INVOLVED IN THE FRAUD TO 113.94 BILLION RUPEES
($1.77 BILLION), WHICH IT SAID WAS DETERMINED AFTER
FURTHER INVESTIGATION AT ITS MUMBAI'S BRADY BRANCH.
• THIS FRAUD IS DONE BY NIRAV MODI IN 2011 WHO
FRAUDENTLY RAISED FUNDS WORTH OF RS.12,636 CRORE
FROM VARIOUS PUBLIC & PRIVATE SECTOR BANKS BY
SHOWING LETTER OF UNDERTAKING (LOU) ISSUED BY PUNJAB
4. ABOUT NIRAV MODI
• 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 JEWELRY 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 WITH THE MONEY HE
STOLE FROM THE PEOPLE OF INDIA.
5. HOW DID PNB SCAM OCCUR
• NIRAV MODI EXPORTED ROUGH STONE FORM FOREIGN COUNTRIES WORTH CRORES OF
RUPEES.
• THE EMPLOYEES AT PNB BRADY HOUSE BRANCH FRAUDENTLY ISSUED A LOU FOR 365
DAYS WITHOUT MAKING ANY PROVISIONS FOR COLLATERAL AND BYPASSING CORE
BANKING SYSTEM (CBS).
• THE NIRAV MODI’S THREE COMPANIES NAMED DIAMOND R US, SOLAR EXPORT AND
STELLAR DIAMOND ALLEGEDLY RAISED LOANS FROM AXIS BANK, UCO BANK AND
ALLAHABAD BANK BY SHOWING LOU.
• THE FIRM ALSO RAISED FUNDS FROM INDIAN BANK'S OVERSEAS BRANCH FOR PAYING TO
THE SUPPLIERS.
• NIRAV MODI’S FIRM AGAIN REQUESTED THE BANK TO ISSUE ANOTHER LOU BUT THE
OFFICIALS REFUSED ON GROUND THAT THE COMPANY HAS TO KEEP COLLATERAL WITH
BANK BUT MODI’S FIRM ARGUED THAT NO SUCH MONEY WAS KEPT ON MARGIN FOR THE
6.
7. NOW WHAT NEXT
• LOU WAS ISSUED BY PNB BANK, HENCE IT IS RESPONSIBILITY TO PUNJAB NATIONAL BANK TO
PAYBACK ALL THE LOAN WITH ALL INTEREST TO OTHER BANK 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 INTERPOL TO ARREST NIRAB MODI FROM
FOREIGN LAND.
• BANK AND GOVERNMENT OF INDIA 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 SERVICES CHARGES AND GOVERNMENT OF INDIA SOME TAXES TO
RECOVER LOSS FROM COMMON POOR PEOPLE WHO HAVE NOTHING TO DO WITH THIS SCAM.
8. EFFECTS OF PNB SAME
• PNB HAS SUSPENDED 10 OFFICERS OVER THE RS 11,400 CRORE SCAM AND
REFERRED THE MATTER TO CBI FOR INVESTIGATION.
• ACCORDING TO MEDIA REPORTS, NIRAV MODI LEFT THE COUNTRY ON JANUARY
1 WEEKS BEFORE THE CBI RECEIVED COMPLAINT FROM PNB ON JANUARY 29.
• HIS BROTHER NISHAL , A BELGIAN CITIZEN, ALSO LEFT THE COUNTRY ON
JANUARY 1, WHILE WIFE AMI, A US CITIZEN, AND BUSINESS PARTNER MEHUL
CHOKSI, THE INDIAN PROMOTER OF GITANJALI JEWELRY CHAIN, DEPARTED ON
JANUARY 6.
9. COURSE OF ACTION
• THE PUNJAB NATIONAL BANK IN A LETTER ON FEBRUARY 12 WARNED THE OTHER BANKS BY
REVEALING THE MODUS OPERANDI USED BY BANK OFFICIALS OF PNB'S BRADY HOUSE BRANCH.
• THE BANK ALSO CAUTIONED OF A SIMILAR MODUS OPERANDI USED BY THE SAME BRANCH
OFFICIAL IN COMPANIES BELONGING TO GITANJALI GEMS LTD, PROMOTED BY MEHUL CHOKSI
VIZ. GITANJALI GEMS, GILI INDIA AND NAKSHATRA WHILE ISSUING LETTER OF UNDERTAKINGS
(LOU).
• AMONG THOSE NAMED IS A DEPUTY MANAGER, GOKUL NATH SHETTY, WHO WAS POSTED AT
PNBS FOREIGN EXCHANGE DEPARTMENT IN MUMBAI SINCE MARCH 31, 2010. HE HAD
ALLEGEDLY ALONG WITH ANOTHER OFFICIAL MANOJ KHARAT FRAUDULENTLY ISSUED LOU TO
THESE FIRMS WITHOUT FOLLOWING PRESCRIBED PROCEDURE OR MAKING ENTRIES IN THE
BANKING SYSTEM, AVOIDING DETECTION OF TRANSACTIONS.
10. DETECTION
WHEN NIRAV MODI COMPANIES ASKED FOR LOU FOR RAISING BUYERS' CREDIT
AFTER THE RETIREMENT OF THE PNB EMPLOYEE INVOLVED IN THE SCAM, THE
PUNJAB NATIONAL BANK SOUGHT 100 PER CENT CASH MARGINS FOR ISSUING
LOU. THIS WAS CONTESTED BY THE NIRAV MODI FIRMS, SAYING THEY HAD
AVAILED OF THE FACILITY FROM AS EARLY AS 2010.