InvestorQ : How Nirav Modi illegally got money from the Punjab National Bank?
Purvesh made post

How Nirav Modi illegally got money from the Punjab National Bank?

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Shreya Karn answered.
1 year ago


Nirav Modi is one of the instigators of India’s biggest Bank fraud of Rs. 14,000-crore. This fraud is said to have involvement of bank staff too. Nirav Modi flew to London to avoid the arrest that was issued in India for Money laundering and other charges. The big news is that after continuous talks with UK authorities, Nirav Modi was arrested by UK official on Tuesday 19 March,2019. Not only arrest, but the Bail of Nirav Modi was also rejected by District Judge Marie Mallon.
Nirav Modi and his uncle Mehul Choksi has obtained credit from Punjab Nation Bank by presenting fake Letters of Undertakings (LoUs) to raise billions of dollars in foreign credit. This fraud of diamantaire Nirav Modi and his uncle was unfolded when the PNB employee involved scam was retired and the new officials asked for 100 per cent cash margins for issuing LoUs, as per the rules. On this, Nirav’s firm claimed to receive LoUs since 2010 without such rule, which gave suspicion and unfolded the fake LoUs fraud.


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K V RAO answered.
1 year ago


Nirav Modi didn't get loans from PNB illegally. But businessmen like NM have learnt the art of availing loans from state owned banks, please note SOBs. He couldn't have got it from lenders like HDFC Bank or Kotak Mahindra. SOBs make a big hue and cry on small loans. They virtually harass them. But when it comes to big borrowers like NM, they just present their cases through consultants. Consultants know the trick of the trade. Further SOBs are happy to grant loans when such proposals come within the purview of committees/boards. One needs to have a project report, bigger it is, least understood and least read. Lenders then prepare their own appraisal memo. In consortium lending, the do called leader prepares it and circulates it among participating lenders (PLs) . PLs just copy them altering grammar and a few sentences. To sum up, it is nothing but a big tamasha being played on poor depositors funds.