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FAQ: What is the PNB scam? | India News


What is the PNB scam?
This relates to fraudulent Letters of Commitment (LOU) worth more than Rs 11,000cr issued by the Brady House branch of Punjab National Bank in Mumbai.
Who are the main defendants?
Diamond dealers Nirav Modi and his uncle Mehul Choksi are believed to have planned the scam, in collusion with some bank officials.
Why were the LOUs issued?
The LOUs were allegedly issued for payments abroad by companies related to Nirav Modi and Mehul Choksi.
How was the fraud perpetrated?
Some corrupt bank employees bypassed the central GNP system to issue LOUs to overseas branches of other Indian banks, using the international financial communication system, SWIFT.
When did the fraud come to light?
PNB approached CBI in January 2018, naming two bank officials, Nirav Modi, Mehul Choksi, and others associated with their businesses of ‘cheating’ the bank.
Action against Nirav Modi in India
Nirav Modi’s properties in India, including jewelry, paintings and real estate, worth approximately Rs 523 million, have been attached by ED.
Where is Nirav Modi now?
Nirav Modi is now in a UK jail after being arrested in March 2019. He is fighting extradition to India to face trial.
Where is Mehul Choksi now?
According to the latest reports, Choksi has fled Antigua and Barbuda from where the Indian government was attempting to extradite him.

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