What is Punjab National Bank Scam? PNB Fraud


Punjab National Bank Scam, PNB Fraud

PNB Fraud: The Punjab National Bank Fraud Case is about a fraud which took place at the Punjab National Bank. It is a bank that operates in India but has currently been making headlines due to all the wrong reasons. At the Brady House branch in the happening city of Mumbai, the fraud took which place shook the nation overnight as it came to light and innumerable unimaginable facts were revealed to the masses. According to reports and investigation, the mastermind behind this fraud of 14,356.84 crores INR is none other than a diamond and jewellery dealer, Nirav Modi. What made the case even more spiced up for the media reporters and the masses just the same was the fact that Nirav is closely related to the Ambanis, the richest people in India. And, just some time back. Nirav Modi had been spotted with the honourable Prime Minster of the country, Narendra Modi.  
Bank Scam Poster with pics of Significant People.
PNB Scam Poster
As per records, Nirav Modi, his wife, his brother in law and his uncle are all partners in firms, namely, M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamonds. They have all been booked by the CBI under charges of fraud. This implies that they have taken the stated amount of loan and then failed to return it. 
While there were several question raised regarding how can Punjab National Bank actually give away such a big amount as loan, the questions of the common man have remained unanswered by the authorities.

This news became the highlight for every channel in early 2018. However, by the time the scam was reported, Nirav Modi and his allies had already left India. 
In fact, they are all presently living in the United Kingdom. On part of the Indian government, they have asked for the culprit’s extradition.

Some faith has been restored in the legal system of the nation because the Enforcement Directorate has already started taking steps so as to confiscate their assets as soon as possible, under the Fugitive Economic Offenders Ordinance.
Scam and Frauds by Punjab National Bank babus
Bank Fraud
When the officials of the Punjab National Bank were questioned regarding this scam and fraud and how it took place without their knowledge, it chose to take an easier way out and stated that two of their officials from the particular branch were involved in the entire act. This is so because the core system of the Punjab National Bank had been breached. 
The employees who were being pointed fingers at, were the ones who had issue LOUs to other branches of Indian banks that lie in other nations. 
Reportedly, some of these banks are the Allahabad Bank, the Axis Bank and the Union Bank of India (UBI).

All of this was made possible through the use of SWIFT. SWIFT is an international financial communication system. 
The most important medium through which is all came to be noticed was when a new employee made note of the issue.
Alerting about Scam of Public Sector Bank babus
Scam Alert

Though it was late by then and the matter had already gone out of the hand of the bank officials, they complained about it to the CBI.

At the present moment, three parties investigating the scene are the CBI, the Reserve Bank of India (RBI) and the Enforcement Directorate. 
With such increased involvement, it was obvious that no one would be spared. Thus, the CBI then named important authority members and charged them for failure to follow the circulars and caution noticed that has been sent out by the Reserve Bank of India regarding SWIFT messages and core systems. Namely, these officials are Usha Ananthasubramaniam (the former chief executive officer of the Punjab National Bank), and two executive directors who are KV Brahmaji Rao and Sanjiv Sharan.

How did the PNB scam come to light?

According to claims of the Punjab National Bank which are apparently clearly bogus, the firms has made their way to the bank on 16th January this year. They wishes for LoUs so that they would be able to pay their suppliers that were overseas.
However, the bank said that they would not be able to extend any help until and unless there was a guarantee of one hundred percent cash margin. It was then that the firms argued that they had received such aid in the past as well without the need to present any guarantee. This was mind rattling and the officials opted for checking all history of the bank. When they saw that no such aid had been provided from their end, they suspected that something was definitely fishy.

Within a span of less than 14 days, the bank filed a complaint with the CBI and stated that the above stated parties along with two officials had committed a fraud and causes losses to the bank.

The names of the two employees have also been clearly stated. They are Gokulnath Shetty (the retired Deputy Manager of Punjab National Bank) and Manoj Kharat. They were the ones who had played a vital and pivotal role in issuing incorrect LoUs to creditors based in Hong Kong. All of this was done of the behalf of the enterprises that had initially approached the bank.
Explainer: Actual Situation of PNB and Nirav Modi Scam
Nirav Modi Only Had Right to Seek not to Get Loan, so Bank babus are Real Culprits

Current status of the PNB scam and Nirav Modi’s involvement

What is even more shocking now is the fact that such frauds are allowed to leave the nation so easily without any strict action being taken against them. This is what leads the masses to believe that the Indian Prime Minister had tried his best to eradicate corruption but the system is so flawed that he cannot do anything alone until and unless every individual joins him in his endeavours.

But who to join? Who can spring up and go to Nirav Modi?

This is why he is there as the elected representative and commander of all powerful machinery. But public is hopeless as no scam can take place like this alone. 
There is always a nexus of all machinery and that is how it succeeds and real culprits who are there in machinery who are the actual organizers of such scams escape away with pride and people are habitual of 'nothing happens to the corrupt'.

Of course, when nothing is made to happen then nothing will happen, as those responsible to make things happen do not want to make it happen as simian sharing the filthy cream.

A clear example of this is that in ICICI bank scam all officials including the CEO Chanda Kochhar and her husband are being charge sheeted and office bearers are being accused, not outsiders, as its a private sector bank.

But in Indian public sector bank scams only outsiders are named as if they have the right to take away loans from bank, despite we know they have only right to seek and not the right to get. This proves extremely dismal nexus of babus and their enroped netas.

This all is based on genuine interest, as in State led banks there is no genuine interest of government in state coffers while in private sector banks they have private individuals as owners who have their genuine interest in their state in bank.

If statements are to be believed, then Nirav Modi is actually travelling and residing in another nation with a fake Indian passport. However, that is not surprising at all. This is not the first time that such an incident has taken place in the nation.

The most known similar case is that of Vijay Mallya, the owner of Kingfisher Airlines. On 13th June, the CBI requested the Interpol to issue a Red Corner Notice (RCN) so that it would receive aid in its investigation against the other family members of Nirav Modi, such as his brother and his uncle. 

Latest Updates in Punjab National Bank Scams

Attorney General Tushar Mehta informed the Supreme Court that 18 million rupees had been recovered from refugees Vijay Mally, Nirav Modi and Mehul Choksi.
Mehta told the Supreme Court that the number of cases registered under the Money Laundering Prevention Act (PMLA) against Mallya, Modi and Choksi is now Rs 67 million.
The court heard a number of petitions questioning ED's powers to locate, prosecute, investigate and link the proceeds of crime.
"The Law Enforcement Directorate (ED) in the cases of Vijay Mallya, Nirav Modi and Mehul Choksi has been able to seize more than £ 18 million worth of assets due to PMLA court orders," Mehta was quoted as saying. it is said in the report.v Hindustan Times.

Latest Update on Mehul Choksi

Choksi is wanted in a Rs 13,500 million fraud case involving the Punjab National Bank. He is now on the Caribbean island of Antigua after being released on bail from Dominica, where he was arrested while trying to escape to prevent extradition to India. Nirav Modi, Choksi's cousin, is also wanted in a PNB fraud case. He is also in London and awaiting extradition to India.

See also:

Ponzi Scam

Tags: Bank Fraud, Bank Loan, Corruption in Banks, Economy, Finance, Fraud, Indian Bank Fraud, NPA, PNB Fraud, PNB Scam, Punjab National Bank Scam, Scam, Scam Alert

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