PNB cheated for $1.77 billion
1 week ago Shruti Goel 0
Recently, a fraud has been detected by the Punjab National Bank ( PNB ) at one of its branches in Mumbai. According to the statements of the bank, fraudulent transactions of over $1.77 billion have been found in one of its branches in Mumbai. As a result of these fraudulent transactions and losses, the shares of the bank have fallen more than 6%. This fraud has been found in favour of some selected account holders with their apparent involvement. The state of matter has reached a stage where it has been referred to the law enforcement agencies to examine and hold the culprits as per the law of the land.
The shares have fallen on Wednesday morning. They were in the red even when the broader market was in the green marginally. The fraud has possibly been done by a diamond merchant Nirav Modi.
Nirav Modi and the $1.77 billion PNB Fraud
Nirav Modi is the founder of a global diamond jewellery house established in 2010. His family members have been diamantaires and he grew up in Antwerp. He has always had an interest in art and design. He has been accused of cheating the PNB in conspiracy with the bank officials.
The Indian government’s Central Bureau of Investigation (CBI) launched an investigation into Modi, in February 2018. They acted on a complaint by the Punjab National Bank which is a state banking institution. According to the complaint, Modi and his business partners defrauded the bank for INR 280 crore which is approximately equal to 40 million USD. Due to this huge fraud of 280 crore, the bank is liable to suffer the loss of approximately $1.77 billion over the next one year. Apart from Nirav Modi, his wife, brother and business partner, retired PNB deputy manager Gokulnath Shetty and staff member Manoj Kharat have also been named as accused in the case.