The country’s second largest public sector bank PNB alleges that billionaire jeweler designer Neerav Modi took a sworn affidavit from a bank located in Mumbai and took foreign money from other Indian banks. And a total of 114 billion rupees scandal has emerged in PNB
In this case being called the country’s largest banking scam, PNB has suspended ten officials and has complained to the CBI. After the disclosure, on Wednesday, shares of PNB declined by about ten per cent, leaving investors worth Rs 4000 crore.
False was going on since 2011
According to sources, this fake was going on since 2011 and involved in the involvement of senior officials of the bank. In a statement, PNB said that in one of the branches located in Mumbai, fraud was transmitted to some account holders.
On the basis of these transactions made by Nirav Modi’s brother Nishal, wife Amy and Mehul Chinabhai Choksi, the accused obtained loans from other Indian banks abroad. Choksi Jewelry Chain is the owner of Gitanjali.
Modi had filed a case of Fraud worth Rs 280 crore on PNB 10 days earlier. There has also been a collusion of bank employees. The CBI is investigating it. In addition to Modi, his brother Nishal, wife and partner Choksi have been named as accused.
CBI officials did not give any details about the future action on the basis of fresh complaints received from PNB, but so sure that after examining the complaints, proper legal action will be taken against the Nirav Modi and the Jewelry company. It is being called the country’s largest banking scam. Earlier, the scam of Rs 9000 crore of Satyam Computers cases came out.
Look at these too
Sources said that bank branches dealing with South African groups are also under investigation.
Economic Affairs Secretary said, will not affect other banks
Economic Affairs Secretary Rajiv Kumar said that PNB is a separate matter and it will not have any effect on other banks. Demonstrating activation, the Finance Ministry has asked the banks to report to the CBI and ED on the matter so that speedy action can be taken.
This check is part of the clean-up drive, which was started in 2015 with Asset Quality Review. Through this campaign, it is the purpose of providing hassle free banking to the banks responsible for the clean and responsible lenders forever.
What is the Letters of Undertaking
Letters of Undertaking are the feature letters. This is a bank issuing branches of other banks. On this basis foreign branches give money to the lender. Foreign bank branches are also under investigation.