Name: Who are the PNB officials who colluded with Nirav Modi in the Rs 11,000 crore fraud?
Uploaded: 2018-02-16T19:44:19+0000
Channel: Shweta Punj
Description: The CBI FIR names two junior bank officials who fraudulently issued Letters of Undertaking.

Money

Chhota Modi

&lt;p id='p_1'&gt;Mumbai-based diamond merchant and jewellery designer Nirav Modi, the prime accused in the&amp;nbsp;Rs 11,360-crore banking fraud&amp;nbsp;reported by the Punjab National Bank (PNB), has fled the country. According to reports, he has flown&amp;nbsp;to Switzerland to evade arrest.&amp;nbsp;Incidentally, Nirav's last major public appearance was at the World Economic Forum in Davos, Switzerland,&amp;nbsp;where he&amp;nbsp;was part of a delegation of Indian businessmen and corporate leaders that accompanied Prime Minister Narendra Modi.&lt;/p&gt;&lt;p id='p_2'&gt;Nirav&amp;rsquo;s fraud was revealed in the third week of January, when his companies sought a fresh loan from PNB, which is India&amp;rsquo;s second-largest state-run bank. When the bank insisted on guarantees to issue Letters of Understanding (LoU) &amp;mdash;&amp;nbsp;an assurance given by one bank to another as security to meet liabilities on behalf of a customer &amp;mdash; the companies allegedly said they had used the facility before.&lt;/p&gt;&lt;p id='p_3'&gt;That's when the bank started its investigation. PNB claims it was soon discovered that an unauthorised junior-level official fraudulently issued LoUs on behalf of some companies belonging to the Nirav Modi Group. According to PNB&amp;rsquo;s&amp;nbsp;&lt;a title='complaint '  rel='nofollow' href='https://www.bloombergquint.com/business/2018/02/14/the-nirav-modi-case-how-the-18-billion-fraud-detected-at-pnb-unfolded' target='_blank' rel='nofollow'&gt;complaint&amp;nbsp;&lt;/a&gt;to CBI, five&amp;nbsp;LoUs were issued in favour of Allahabad Bank at Hong Kong and&amp;nbsp;three in favour of Axis Bank at Hong Kong.&lt;/p&gt;&lt;p id='p_4'&gt;Based on a complaint from PNB, the Enforcement Directorate (ED) raided Nirav Modi's home, showrooms and offices in Mumbai, Delhi and Surat. According to reports, on February 15, 10 of Modi&amp;rsquo;s properties (at least) were raided, including his home in Mumbai's Worli, his jewellery boutique in the city's Kala Ghoda area, and showrooms in Delhi's Chanakyapuri and Defence Colony.&lt;/p&gt;&lt;p id='p_5'&gt;The CBI alleged that the agency had received two complaints against Nirav being involved in a fraud worth Rs 10,000 crore.&lt;/p&gt;&lt;p id='p_6'&gt;He was already under the CBI's scanner, having being previously named in a FIR lodged over an alleged Rs 280-crore fraud, again at PNB, although it isn't clear whether&amp;nbsp;it is directly linked to the reports about the&amp;nbsp;Rs 11,000-crore fraud.&lt;/p&gt;

Who are the PNB officials who colluded with Nirav Modi in the Rs 11,000 crore fraud?

The CBI FIR names two junior bank officials who fraudulently issued Letters of Undertaking.