What Is PNB Scam And Who Is Nirav Modi, Let’s Know

PNB Scam – Nirav Modi is India’s biggest diamond trader. They have 3 main companies, due to which the whole business runs. The names of the three companies involved in this big scam are Diamond R US, Solar Export and Satilai Diamond. Along with Nirav Modi, his brother, wife and his business partner Mehul Choksi are also defrauding PNB.

Nirav Modi has also left India and his assets are around Rs 11,200 crore. Not only this, but their brand ambassador is Indian actress Priyanka Chopra. On the other hand, Priyanka recently announced that this company has made her the brand ambassador. But he still does not have the money earned for this work.

But Nirav Modi has said in recent news that he is ready to repay his loan from PNB. People say that Modi has sent a letter to PNB to return Rs 5000 crore. Not only this, but in 2017 Forbes magazine placed him in the list of 85 richest people in India. His age is 48 years and his wife’s name is Anne. He has three children and one elder brother.

What Is PNB Scam And How It Was Executed

A scam of about Rs 11,300 crore has come to light in Punjab National Bank. People say that Nirav Modi and other businessmen working with him have a hand in this.

At the same time, since the scam was detected, the share price of PNB has declined by about 8.5%. People say that this fake transaction was done so that some rich people can take advantage of it. The people of Punjab National Bank are also working on this.

Not only this, two government banks and one private bank have also suffered a lot due to this fraud. So far we know that Union Bank of India, Allahabad Bank and Axis Bank have also suffered huge losses due to this scam.

He issued a Letter of Undertaking (LoU) to Nirav Modi and his business partners to buy jewelery from Hong Kong. The above mentioned banks gave money to these people on the basis of LoU through PNB on credit. After this, these people used this money to buy things.

How Did This Scam Come To Light

The scam was unearthed by a branch of PNB in ​​Mumbai. The employees of this bank used to make fake letters of undertaking. After that the SWIFT network told Allahabad Bank and Axis Bank that Punjab National Bank needed some money. After checking the PNB transaction password and verifying that all the details are correct, the bank transferred the money to Diamond R US and two other companies in the US.

As soon as this problem became public, Punjab National Bank fired 10 employees. At the same time, he says that this money was to be sent through the CBS (Core Banking System) system. But later it carried out the scam by inflating the amount with the help of SWIFT system.

People say that 8 fake letters of credit were given to Nirav Modi, Mehul Choksi and others. 3 letters were given to Axis and 5 letters to Allahabad Bank. On the basis of these letters, Allahabad Bank and Axis gave money to Nirav and his friend to buy goods from other countries. Later, when these banks asked PNB to repay the money, it was found that there is no information in the bank’s system in this matter. Then everyone came to know about this scam.

A few days ago, the CBI had accused PNB employee Gokul Nath Shetty and Gitanjali Jewelery Company’s MD Hanumant and his wife of theft of 280 crores. At the same time, the Finance Ministry asked PNB to register an FIR. Along with this, PNB has sent a letter to all the banks asking them to investigate such scams.

What Is LOU (Letter Of Undertaking)

This letter was sent from one bank to another as a kind of guarantee, which is why the other bank gives money to the person as credit. Under this letter, the job of the bank is to give the person the money they need to buy goods from another country. Merchants often require such a letter from the bank to order goods from other countries. So they don’t have to deal with changing money. When a bank gives LoU letter or letter, it means that the bank will be responsible for the money taken by the customer. This letter is given only to those people whose business is so successful that the bank can easily get the money back.

People say that the cost of this scam is around Rs 11,500 crore, which may increase further. The special thing is that such scams have happened in India before. Mallya had defrauded several Indian banks of crores of rupees in the past. At the same time, a big scam has taken place which is still being investigated.

Nirav Modi Detail Information

Full Name	Nirav Modi
wife’s name	Amy Modi
brother’s name	Nishal Modi
place of citizenship	Gujarat, India
age	48 years
total children	3
Total income	1.7 billion dollars
marital status	Married
House	Mumbai
profession	Jeweller (diamond trade)
Business	All over the world (both Bollywood and Hollywood artists buy jewelry)
business partner	Mehul Chinubhai Choksi
company	Forester International

FAQ about Nirav Modi