Author: Annesha Marick, Techno India University
Abstract
This is the biggest scam in the Indian history .This case narrated the scam of fake letter received by the staff of PNB bank .This case also known as Nirav Modi case .PNB bank has announced that it will close all its customers inactive bank account by 1 st June 2024. Customer who have account have become inactive activate their account by completing KYC ( know your customer) by 31 may 2024 .Father of PNB bank lala lajpat rai .
In the Punjab National Bank (PNB) case , there was an fraudulent incident undertaking worth $10000 crore issued by the bank.
The accused said that the designer Nirav Modi and his maternal uncle . Mehul choksi and other relatives and some PNB employees , the accused said that his relatives escaped India in early 2018, days before the news of the scam became public .
Nirav Modi got his first fraudulent guarantee from PNB on March 10 , 2011 And managed to get 1,212 more such guarantees over next 74months .
Nirav Modi , an luxury diamond jewellery and also a designer ranked 57 on the Forbes list of billionaires in 2017.
He is also the founder of the diamond jewellery retail stores . Modi is the chairman of fire Star Nirav Modi chain, key market across the globe .
He has 16 stores in diverse locations such as Delhi , Mumbai , New York , Hong Kong , London , and Macau . He is currently in the United kingdom and is seeking political asylum in Britain .
UK COURT REJECT NIRAV MODI BAIL PLEA –
Buisness man Niran Modi who has been in prison in London for over five years in Tuesday made a new bail application which was rejected by UK judge .
The fifty two years old diamond merchant , who lost money .
District judge John zan accepted their legal team submission the bail application last for three and a half years ago. A joint central bureau investigation (CBI) and enforcement directorate (ED)
Team had arrived from India for hearing and proceedings in court .
He was arrested by warrant on March 19, 2019 and then uk home secretary Priti Patel ordered his extradition in April 2021.
PNB was among the 403 leading and best banks to appear in the global magazine giants ranking . In case of mistake or fraud , you can lodge a Complaint at Bank’s contact centre on toll free number 18001802222/ 18001032222 accessible.
29 th January 2018 , Punjab National Bank (PNB) complained to the police authorities that two of its staff members in collusion with Nirav Modi and Mehul Choksi had cheated the bank for about two billion dollars.
5 th February 2018, the PNB informed SEBI that it had started its own internal scam and CBI after convening a meeting, took over the inquiry process.
14 th February ,2018 PNB declared a fraud of rs . 11400 crores of money and additionally, foreign branches of Indian overseas banks also declared money was being credited to Nirav Modi and his firms because of unapproved way of PNB staff in form of unauthorised letter or undertaking.
16 th February 2018, After the complaint filed against Mehul Choksi, CBI investigated the stores of gitanjali Group. There was a recovery of loss within a period of six months .
On 17 th February 2018, CBI issued arrest warrants against two corrupt employees of PNB and Nirav Modi group who were integral to the scam.
The directorate (ed) seized diamonds gold and jewellery items from Modi s home shops and offices worth rs 56.74 billion approx.
On 20 th February , the PNB market was running in loss, because of immense fear by the scam and lost of thousand of crores in market capitalisation. Nirav Modi and his lawyers denied of the crimes and offences. But ed after investigation Nirav Modi and Mehul Choksi laundered funds illegally through nearly 100 shell .
Three or more officers were taken in to the custody for investigation.
21 St Feb 2018, CBI started taking custody of many officers who were involved in a scam including general manager of PNB , Mr Rajesh Jindal who served Mumbai branch for many years there the scam took place .
On 23 Rd Feb 2018, ICAI appointed independent auditors for investigation of PNB SCAM.
After such scam happened, the RBI declared stricter control of supervising and regulating system.
27 th feb 2018, Nirav Modi filed bankruptcy case.
On 28 th feb 2018, M.k.Sharma , a former auditor arrested by CBI for such PNB SCAM
1 st March 2018, Bishnubrata Mitra was arrested , vice president of Gitanjali group.
2nd june 2018, Notice send against Nirav Modi for fraud or scam of PNB
26 th June 18 – Mumbai court issued a order against Nirav Modi and Mehul Choksi to appear them before court as per as provision of money laundering sct 2002.
3 Rd August 2018, Indian government told Nirav Modi to come back to India .
On 20 th March 2019 , Nirav Modi was arrested in London he was sent to prison.
29 th March 2019- Nirav Modi rejected the bail application.
25 th February 2021- The UK court ruled Nirav Modi can be extradited to India to face charges of fraud and money laundering.Proof—-
To check detail of your last transaction in your bank PNB you can send them sms
MINSTMT <space >Account Number’ to 5607040 or give missed call on 1800-180-2223 or 01202303090. If you have smart phone and internet connection, you can use PNB mobile app .
To get a copy of bank statement
Visit your bank Web site.
Log in to online banking digital or internet banking etc
Click statement download it .
Make sure you have selected the correct account
Choose a statement
Choose pdf file format
Download .
Conclusion
PNB , there was a scam of rs 11400 crore money it was declared that the money was credited to Nirav Modis account . Thr staff of PNB bankrecieved an unauthorised letter .
The overseas loans were not repaid. There was a scam of misuse of letter of undertaking.
The focus was to repay the loan to the individuals who have account in PNB bank.
The owner of PNB was also arrested .
The court order to resolve the issue .
It made a fear to many people. SBI and other bank also made safe after this incident happened .
The estimated amount was around $13000 crore, making it one of largest banking frauds in India .
FAQS
Is PNB bank trusted after this scam ?
The Punjab National Bank case related to fraudulent letter of undertaking worth rs 12000 crore issued by the Punjab National Bank . The fraud was allegedly organised by jeweller & designed by Nirav Modi.
How much money recovered from PNB scam ?
Assets worth 1,052.42 crore have been successfully restored to the victim banks .
What happened to Nirav Modi ?
Mr Nirav Modi is currently languishing in privately run thameside prison in Greenwich , there he was transferred in September last year from Wandsworth jail.
