Nirav Modi, a billionaire diamond jeweler, looted over 11,400 crore rupees from Punjab National Bank through fraudulent Letters of Undertaking. Using his connections with a PNB official, Modi was able to obtain over 150 LoUs without proper verification or collateral. By the time the scam was discovered, Modi and his accomplice Mehul Choksi had fled the country. So far authorities have seized assets worth over 5,100 crore rupees, but 6,300 crore rupees is still outstanding from the largest banking fraud in Indian history. The scam highlighted weaknesses in bank security controls that allowed such large-scale fraud.

1. PNB SCAM
BY VIGNESH

2. 11,400,000,000
What do you think?

3. This is the Amount of money that has
been looted by single person from a
bank.

4. PUNJAB NATIONAL BANK (PNB)
Indian multinational banking and financial services company
Brady house branc
in Mumbai

5. Sudden
decrease
in share
prize
How?

6. All
because of
a SCAM
WHO?
WHEN?
HOW?

7. Man behind the scam
Billionaire
Diamond jewellery designer
Criminal status:
Most wanted
Currently absconding
The Shining
Diamond trader
took away PNB's
Shine

8. Forbes India in 2017

10. Nirav Modi firms
Gitanajali
owned by
Mehul Choksi

11. Key terms
LoUs-Letter of Undertaking

13. Key terms

14. Key terms

15. Strategy
 Nirav Modi wants to import pearls or diamonds and then sell
them.
 Nirav Modi approaches a bank.
 As the interest rate of a bank in India is 6.5(according to
Trading Economics global macro models and analysts
expectations)
 The interest rate in foreign country like Hongkong has less
interest rate
 Decided to take loan from Indian bank that has branch in
foreign countries like axis bank, Allahabad Bank

16. WHY?

17. HOW?
 Gokulnath Shetty

18. He asked the PNB official to open another LoU.
The money from the second LoU was used to
repay the first.
At least 150 LoUs was given to Nirav Modi firm in
which few has the validity till today .

20. And the truth came out…………
PNB files a case on CBI on January 30th 2018
The total loot was 11,400 cores

21. Did CBI arrest him?
Nirav Modi and Mehul Choksi
left India on January 6th 2018
His family moved to new York on
January 5th 2018

22. Assets seized so far ………
Mutual funds and shares worth
Rs.94.52 crore were frozen which
belongs to Nirav Modi and Mehul
Choksi.
The passport of Nirav and Choksi was
banned.
Rs.5100 crore in Gold and
Diamond Jewelry was
seized by Enforcement
Directorate

23. Who will pay the rest?
The total looted money = 11400 ₹ corer
The money regained by is asset =5100 ₹ corer
Remaining =6300 ₹ corer

24. Loop holes
 Multi Factor Authentication.
 Fraud Monitoring
 Rotation of employees in every 3 years
 Better Management Control