Uploaded byVIGNESH A
PNB scam
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.
PNB scam
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- 3. This is theAmount 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
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- 7. Man behind thescam Billionaire Diamond jewellery designer Criminal status: Most wanted Currently absconding The Shining Diamond trader took away PNB's Shine
- 8. Forbes India in2017
- 10. Nirav Modi firms Gitanajali ownedby Mehul Choksi
- 11. Key terms LoUs-Letter ofUndertaking
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- 15. Strategy Nirav Modiwants 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
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- 18. He asked thePNB 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 truthcame out………… PNB files a case on CBI on January 30th 2018 The total loot was 11,400 cores
- 21. Did CBI arresthim? Nirav Modi and Mehul Choksi left India on January 6th 2018 His family moved to new York on January 5th 2018
- 22. Assets seized sofar ……… 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 paythe rest? The total looted money = 11400 ₹ corer The money regained by is asset =5100 ₹ corer Remaining =6300 ₹ corer
- 24. Loop holes MultiFactor Authentication. Fraud Monitoring Rotation of employees in every 3 years Better Management Control
Editor's Notes
- #3 The Amount of money that has been looted by single person from a bank
- #8 Born27 February 1971 Alma mater Wharton School of the University of Pennsylvania (u .pen)
- #9 Nirav modi was ranked 85th richest person
- #10 Keshavlal Modi –settled in Singapore Deepak Modi-settled in antware beligum Nirav Modi- settled in Mumbai Mehul choksi-Born and settled in Mumbai Nirav Modi’s children – studying in new York
- #12 IT enables the payment if the customers offshore suppliers in foreign currency. if the importer fails to make the on the due date, the bank honours the commitment.
- #13 Lou from PNB after the scam
- #14 SWIFT-Society for Worldwide Interbank Financial Telecommuniaction
- #17 He visited PNB and requested to help him by giving a LoU Punjab National bank agrees but asked for the “COLLATERAL” PNB sends a message on SWIFT The foreign bank trusts only PNB. So it gives the money to PNBs account with it, called by PNB as a “Nostro” PNB then gives NIRAV MODI the money from the Nostro account
- #18 As a collateral Nirav Modi didn’t produce anything. He bribed the manger (Gokulnath Shetty ) the branch manger , clerks and bank officials of Brady house of 1crore rupees
- #21 It was lasting for more than five years the turning point came whenOne of the officer retired in the end of 2016 and the new officer refused to roll over the LOU as he could not find the past transactions