PNB Scam: Flying NiMo Fools India as Government Looks the Other Way
In what could be said as one of the biggest frauds in the history of Indian banking, Punjab National Bank (PNB) has reported unauthorised transactions worth ₹11,400 crore in one of its branches in south Mumbai. Nirav Modi, Nishal Modi, Ami Modi and Mehul Choksi — all of whom are partners at Diamond R US, Solar Exports and Stellar Diamonds, have been accused in the case. PNB claims that the fraud went undetected since 2011 because the Letters of Undertaking(LoUs) sent through SWIFT were not tallied with the company’s core banking system and so the management never came to know that these had gone out in the first place. But how did this happen? How were the SWIFT transactions not tallied with the PNB’s central or core banking software?
Get the latest reports & analysis with people's perspective on Protests, movements & deep analytical videos, discussions of the current affairs in your Telegram app. Subscribe to NewsClick's Telegram channel & get Real-Time updates on stories, as they get published on our website.
