The PNB scam, also known as the Nirav Modi scam, is one of the largest financial frauds to have taken place in India. The scam came to light in January 2018, and involved billionaire diamond merchant Nirav Modi and his companies, who allegedly acquired fraudulent letters of undertaking (LoUs) from the Punjab National Bank (PNB) to secure loans from other Indian banks abroad.

The PNB scam was a major financial fraud that came to light in January 2018. It involved billionaire diamond merchant Nirav Modi and his companies, who allegedly acquired fraudulent letters of undertaking (LoUs) from the Punjab National Bank (PNB), one of India’s largest public sector banks.

The scam was perpetrated over a period of several years, with the involvement of a few PNB employees who allegedly issued the fraudulent LoUs without following proper procedures. The fraud was discovered in January 2018 when PNB officials informed the Central Bureau of Investigation (CBI) about the unauthorized issuance of LoUs.

It is estimated that the scam caused a loss of over $2 billion to the Indian banking system, and is considered to be one of the largest financial frauds in India. Several individuals, including Nirav Modi, were arrested in connection with the scam and the case is currently being investigated by multiple agencies. PNB has also been fined by the Reserve Bank of India for its failure to report the fraud in a timely manner.

Conclusion

The PNB scam, also known as the Nirav Modi scam, is a major financial fraud that has caused significant damage to the Indian banking system. The scam was perpetrated over several years by billionaire diamond merchant Nirav Modi and his companies, who allegedly acquired fraudulent letters of undertaking from the Punjab National Bank. The case is currently being investigated by various agencies and several individuals have been arrested in connection with the scam.