With regards to the 11346 crore fraud in the Punjab National Bank, the enforcement directorate had conducted raids in multiple cities in showrooms owned by diamond jeweller Nirav Modi. The raids were conducted in 3 places in Surat and two locations of Delhi and 4 places in Mumbai by ED. Nirav Modi fled from the country on January 1 reportedly, and the complaint from PNB was received by CBI on January 29, and with the case filed on 31 January, the search for Nirav Modi has been intensified.
PNB, which coincidentally happens to be India's biggest public sector bank, reported the case to CBI, accusing Nirav Modi of conspiring with bank officials of a branch in Mumbai, to allegedly involve in bank defrauding. Reportedly, Modi and his aides had acquired PNB guarantees worth 1.7 billion USD, and they used the same to get foreign loans.
This process of scam
began way back in 2011, banks like Bank of Allahabad, Union Bank of India and
Axis Bank had also offered credit on the basis of the PNB issued letter of undertaking.
This scam by Nirav Modi has been the biggest scam since the Sathyam
computers scam, and even three other firms like Gitanjali,Nakshatra and Ginni
are being scrutinized by the ED.
