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Market NewsNewsThe Nirav Modi and Mehul Choksi saga and its aftermath

The Nirav Modi and Mehul Choksi saga and its aftermath

Here’s everything you wanted to know about the Rs 12,600 crore PNB fraud and its aftermath

If the PNB scam was confounding, the spate of investigation details can be even more so. Here’s everything you wanted to know about the Rs 12,000 crore fraud and its aftermath, The Economic Times reported. 

HOW IT BEGAN

A police complaint was filed by PNB (late January) against Nirav Modi and Mehul Choksi for defrauding the bank of Rs 281 crore by colluding with some bank officials, said The Economic Times report. Last month, PNB revised the amount involved in the fraud to Rs 12,600 crore (around $1.9 billion), it said. 

HOW THEY DID IT 
Officials at PNB’s Brady House branch in Mumbai issued LoUs (letters of undertaking) to enable companies belonging to Modi and Choksi to access forex credit from other Indian banks abroad. They neither sought any collateral nor did they record LoU issuance in the bank’s core banking system as required, The Economic Times report said. 
 

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