PNB Scam: $1.8 Billion

PNB is India’s second-biggest state-run lender. The bank discovered that at least 2 of its employees – deputy manager Gokulnath Shetty and clerk Manoj Kharat – from its Brady House branch in Mumbai repeatedly issued Letters of Undertaking (LoU) to Nirav Modi’s companies without following the processes.
An LoU is a guarantee by the issuing bank to the receiving bank and the companies that it would undertake to pay a certain amount of money on a specific date. The Punjab National Bank Fraud Case relates to fraudulent letter of undertaking worth ₹11,356.84 crore (US$1.4 billion) issued by the Punjab National Bank at its Brady House branch in Fort, Mumbai; making Punjab National Bank liable for the amount. The 1992 scam, thought it was Indian market scam, yet it involved a handful of banks.
But, now, why are we back at the olden days scam and the bank scam, because recently, there is this one more scam, the Mehul Chinubhai Choksi, an Indian businessman, who is wanted by Indian Judiciary for his Criminal conspiracy, criminal breach of trust, dishonesty and cheating including delivery of property, corruption and money laundering. Choksi holds Antiguan citizenship, and is the owner of Gitanjali Group, a retail jewellery company with 4,000 stores in India.
An arrest warrant for Choksi has been issued in connection with the alleged Punjab National Bank fraud case. In late May 2021, he had gone missing from Antigua and Barbuda. He was captured in Dominica while trying to flee to Cuba in a boat. A Caribbean court has currently issued a stay on his repatriation from the Dominican Republic.
He is alleged of PNB scam or Fraud of $1.8 Billion, Choksi is a fugitive of Indian government. Though, Choksi has protested his innocence in an open letter.

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