PNB: The scam is more than Rs 11,400 crore

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Punjab National Bank has revealed unauthorized transactions of Rs 1,300 additions to 11,400 crores. This scam is again related to the billionaire jeweler Nirav Modi and his business partner (uncle) Mehul Choksi. Now the estimated size of the fraud is Rs 12700 crores.  An additional letter of undertakings (Lou’s) was found during the checking of the portfolios of the scam.

The value of the scam amount is equal to the PNB’S entire income of Rs 1,320 crores for the year 2017.

PNB had earlier reported unauthorized transactions of Rs 11,400 crores at its Brady House branch in Mumbai on a fake letter of undertakings (Lou’s). These undertakings allowed Nirav Modi group of companies to borrow money overseas.  The undertakings stated PNB as the guarantor of the loans.

The Enforcement Directorate (ED) has seized the assets of Nirav Modi and Mehul Choksi. The ED is hoping to recover Rs 3000 to Rs 4000 crores.

A source in the investigation agency told Money control: “In the past too, we have seen that the actual value of diamonds was much lesser than its stock value. We should at least discount fifty percent of the stock value. Also, the real estate properties of Mehul Choksi and Nirav Modi are together not worth more than Rs 4,000 crore.”

Nirav Modi owns real estate properties of Rs 1500 crore across Surat, Mumbai, Nasik, and Pune. He also owns a solar plant in Nasik.  Mehul Choksi has four SEZ (Special Economic Zones), 2 malls in Kolkata and Hyderabad and 6 flats in Mumbai of Rs 2,500 crore.

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