This is all about Nirav Modi who was a defaulter, how this scam happened and what are the possible solutions

1. “Shining diamond trader snatched PNB’s shine”
Term 1- FMKT
Presented by- Susmita Mandal
Debipriya Banerjee

2. CONTENTS
INTRODUCTION
WHO IS NIRAV MODI?
PERSONS INVOLVED IN PNB’S SCAM
HOW DID SCAM OCCUR?
EFFECTS OF SCAM
HOW WAS THE FRAUD DETECTED
LEGAL REASON
POSSIBLE SUGGESTION TO PREVENT SCAM

3. INTRODUCTION
 29th Jan,2018 PNB filed a criminal complaint
 Against Nirav Modi and his uncle Mehul Choksi.
 Defrauded PNB and causes loss of 2.8 billion Rs.
 14th Feb,2018 in a regulatory filling updated sum 113.94
billion Rs.
 Fraud done by Nirav Modi in 2011
 Raised funds Rs. 12,636 crore
 By showing Letter of Undertaking (LoU)

4. WHO IS NIRAV MODI?
 Importer of diamonds
 Importers prefer to take loans in
foreign currencies.
 The loan taken from any overseas
bank guaranteed by PNB
 Nirav Modi, the billionaire jeweller
 Scammed PNB of over 11400 crore’s
with others

5. PERSONS INVOLVED IN PNB’S SCAM

6. HOW DID SCAM OCCUR?
• Exported rough store
• Issued LoU for 365 days
• Without making any Provisions for collateral
• By passing Core Banking System
• The firm also raised funds
• Again requested the bank to issue another LoU
• Official refused on the ground
• Nirav Modi’s firm argued

7. • After the PNB official started scanning
records
• They didn’t find any such transactions
• Filed a complaint with CBI

8.  Public sector banks looked back on every defaulters
 Whether they were genuine or just make them fool
 2018, 9th Mar Stock price had fallen down (160-95.5)
 RBI had said to PNB to pay all debts to other banks
 RBI stop banks to issue LoU
 Because of this fraud PNB lost trust

9. HOW WAS THE FRAUD DETECTED?
 According to the complaint LoU was detected
 A set of partnership approached the bank
 Jan 16, 2018 with import documents
 Requested buyers credit to make payments
 They had no pre- arranged credit limit
 Branch official asked companies
 So the bank could issue LoU to authorize the credit

10. LEGAL REASON
 Case comes under 420 of IPC
 Person shall be punished
 Imprisonment
 Extend to 7 years
 Liable to fine
 Comes under Criminal Conspiracy
 Under sec 120B