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PNB on Wednesday informed the Bombay Stock Exchange that it has observed some ‘fraudulent and unauthorised transactions’ at its one of the branches in Mumbai to the tune of $1771.69 million (approx). Following are the series of events that tell us about entire series of events that involves PNB fraud:
- CBI has received two complaints from PNB against billionaire diamantaire Nirav Modi and a jewellery company alleging fraudulent transactions worth about Rs.11, 400 crore. 280 crore fraud case that he is already under investigation for, again filed by PNB.
- Nirav Modi, the billionaire in the middle of this controversy, is a luxury diamond jewellery designer who was ranked #57 in the Forbes list of India’s billionaires in 2017.
- According to the complaint filed by PNB with the CBI on January 28, the fraudulent issuance of Letters of Undertakings (LOU) was detected at the Mid Corporate Branch, Brady House in Mumbai.
- A set of partnership firms — Diamond R US, Solar Exports and Stellar Diamonds — approached the bank on January 16 with a set of import documents and requested for Buyer’s Credit to make payments to overseas suppliers.
- On digging further, the bank officials discovered that two of its employees had fraudulently issued LOUs in the past without following prescribed procedures and approvals.
