Nirav Modi Biography Wife Net Worth (PNB 11356 cr fraud Money Laundering Case)
The biggest fraud in the Indian banking sector has been caught in the PNB’s Brady House Branch of Mumbai recently. It is estimated that the fraud amount would be Rs. 11,356 crore Indian rupees. In responding to the fraud event, the bank management has lodged two official complaints to the CBI. The person behind such biggest banking sector fraud is the diamond trader Nirav Modi and others. His wife, brother and his business partner too involved in this deceitful act of involving fraud activities.
Enforcement Directorate (ED) on the basis of CBI’s FIR has also filed a case of money laundering over the people who are involved.
|Business Partner||Mehul Chinubhai Choksi|
|Founder Of||Firestar Company|
|Current Net Worth||$1.7 billion|
|Company Headquarters||Mumbai, India|
|Fraud Found||11,356 crore|
- As per the received information, some of the PNB officials gave wrongful Letter of Undertaking (LOU) to Nirav Modi. Based on that LOU, Modi and his colleagues took loans from several abroad banks from other nation.
- A loan which gained by the Nirav Modi from the PNB is a type of bank guarantee. With that guarantee, the foreign banks and the other Indian banks offered loans.
- Though, PNB yet to list out any names of the banks which have offered loans to Neerav Modi, but according to sources, Union Bank of India, Allahabad Bank and Axis Bank have given loans to the companies and their affiliates on the basis of its LOU.
Complaint Given by PNB to CBI
According to PNB’s complaint, the three companies which are run by Neerva Modi, Diamond R. US, Solar Exports and Stellar Diamonds, have contacted on January 16. These companies wanted short-term credits for foreign suppliers to pay.
Bank officials asked for 100% cash margin before giving Letter of Undertaking (LOU). All the three firms said that they have been taking this facility even before, however, they do not show anywhere in the bank’s records.
Nirav Modi, his wife, brother and business associates are partners of the above mentioned three companies. The credit and LOU which offered in past from March of 2010 by the Ex deputy manager Gokulnath Shetty and Manoj Kharat were given to international brokers & international brokers of other Indian banks to avail financial assistance from other banks.
Impact caused by this Fraud
- This amount is about 8 times the profit of the bank’s 1,325 crore in 2016-17, a third of the bank’s 35,365 crore market cap and 2.5% of the total debt of 4.5 lakh crore.
- Owing to this on 14th February 2018, shares of PNB fell 9.8% in the BSE. Its investors have lost about Rs 3,800 crore. The fact to be noted is the PNB is the second largest public sector bank of the nation.