The Punjab National Bank Scam |

In 2018, one of the biggest financial scams in Indian history was uncovered at the Punjab National Bank. The scam involved the fraudulent issuance of (LoUs) by PNB officials, which allowed diamond merchant Nirav Modi and his associates to obtain over $2 billion in loans from overseas banks.
Nirav Modi, a diamond merchant, was at the center of the scam. He used his connections and influence to gain access to PNB officials and persuade them to issue LoUs without proper documentation.
LoUs are a type of guarantee that banks issue to overseas branches of other banks, promising to pay for goods or services that are being imported. In the case of the PNB fraud, the LoUs were used to obtain loans from overseas banks, which were then used to fund Neerav’s lavish lifestyle.
Mehul Choksi, Neerav’s uncle and business partner, was also involved in the scam. He played a key role in setting up shell companies and diverting funds.
The PNB fraud had a devastating impact on the bank. The bank was forced to make a provision of over $1 billion to cover the losses from the scam, and its share price plummeted.
The scam also led to a loss of confidence in the Indian banking system. Many people lost their savings as a result of the scam, and there were widespread protests.
The (CBI) launched a major investigation into the scam. Several PNB officials were arrested and charged with fraud.
In 2018, Modi and Choksi fled India before they could be arrested. They are currently believed to be living in London.
The CBI urges people to be aware of the red flags of scams and to report any suspicious activity to the authorities.
#punjab #punjabnationalbank #pnb #scammers #scammers #financial #authorities #india #niravmodi #fraud #lous