What happened in the PNB scam?

What has happened? Choksi is accused of defrauding PNB of almost Rs 13,600 crore, went missing for the last three days from Antigua and Barbuda, of which he has been a citizen since early 2018. Investigators indicated that Choksi had escaped to Dominica on a boat probably en route to Cuba.

What do you mean by bank scam?

Bank fraud can be defined as an unethical and/or criminal act by an individual or organization to illegally attempt to possess or receive money from a bank or financial institution.

How did the PNB scam come to light?

When did the fraud come to light? PNB approached CBI in January 2018, naming two bank officials, Nirav Modi, Mehul Choksi and others associated with their businesses of ‘cheating’ the bank.

Did people lose money in PNB scam?

NEW DELHI: About 40 per cent of the money lost by banks in the PNB scam and the fraud linked to fugitive businessman Vijay Mallya’s defunct Kingfisher Airlines has been realised by way of sale of shares seized under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate said on Wednesday.

Is it safe to deposit money in PNB bank?

“For a retail depositor there is no need to panic. Even if the NPA level had been higher than what it is, the safety of bank deposits is sort of supported by the sovereign. Default (on deposits) is ruled out,” Gupta said.

What is the Punjab National Bank fraud case?

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 fraud was allegedly organized by jeweller and designer Nirav Modi.

Is PNB involved in fraud of Rs 11500 crores?

Everyone is sharing on social platforms that PNB is involved in the fraud of Rs. 11,500 crores approx. but everyone is not aware about the way it has happened. So, let us discuss about the one of the biggest scams of the country, The PNB Fraud or Say PNB Scam.

Who is Nitin Shahi and what is PNB fraud case?

On 7 September 2018 one of the accused of the Punjab National Bank (PNB) fraud, Nitin Shahi filed an application in a special Central Bureau of Investigation (CBI) court to book PNB as an additional accused in the case. The hearing on the matter is scheduled to be held on September 21.

Why did Punjab National Bank issue letter of undertaking to importer?

The accused importer approached the Punjab National Bank (Mumbai Branch) for the agreement regarding Letter of Undertaking and the bank had issued the same to the importer after signing the agreement. 1) The collateral security was missing i.e. the agreement was entered without the consideration of any security.