Here’s how Indian taxpayer’s 11,400 crore rupees were stolen by businessman Nirav Modi!
Soon after the scam of Kingfisher airlines yet another criminal scam is revealed in India, ‘PNB scam’. Indian businessman Nirav Modi who is the founder of a global diamond jewelry house by the name of ‘Nirav Modi’, is the one responsible for this scam which has led the Punjab National Bank in debt.
Total debt of 11,400 crore rupees on PNB due to the forgery of fake ‘Letters of Understanding’ (LoU) to sanction multiple business loans. You would be wondering whose money was it anyway. It was your money, indeed. It was the money of 1.35 billion taxpayers of India. Surprised?
Here’s how Indian citizens lost their 11,400 crore rupees:
He is the founder of a global jewelry house by the same name. He has rigid contacts with the CEOs of Reliance Group, Mukesh and Anil Ambani. He is the one accused of a fraud case against the state-owned bank, PNB for $ 44 million. He took various loans from overseas banks by forging LoUs of Punjab National Bank with help of other officials.
According to the reports, Nirav Modi has been claiming loans from overseas banks since 2011 to 2017. It indicates that this scam took place majorly during the tenure of BJP government but began during the rule of Congress in India.
Letter of Understanding (LoU)
For all those who are wondering what letter of understanding are; whenever you apply for a business loan overseas then you need to obtain a Letter of Understanding from another bank as a guarantee for the loan granted. So, in case you/your firm fails to pay back the loan then the bank which allotted you LoU is payable for the credit.
Nirav Modi was in need of some credit for shaping his business and hence he applied for a loan (not once but many times which sums up to $ 44 million). And that is where the forgery of LoUs took place. Nirav used his contacts for forging fake LoUs by Punjab National Bank for validating his loan-file. These contacts included few PNB officials and his finance manager. Soon the banks which gave loan to his firm started to investigate the scam during which when asked by PNB, the officials denied the issue of any such LoUs to Nirav Modi and his firm.
How is it the taxpayer’s money?
Let us remind you yet once again that PNB did not issue any of his LoU with the help of which Nirav was granted loans and therefore, someone would have to pay. Even if PNB pays, it is the taxpayer’s money and even if PNB does not pay then the banks which granted money to Nirav Modi’s firm are all Indian banks containing taxpayer’s money which got looted, nonetheless.
Nirav and Modi
There are rumors of Nirav Modi’s strong connection with the BJP leader Narendra Modi (not because of their surname) as Nirav’s brother is married to niece of none-other-than Mukesh Ambani which are known to be strength behind BJP government. Earlier a congress leader also tweeted that the BJP government has continuously been receiving a handsome amount of help from Nirav Modi but there are yet no solid proofs about the same.
Shocked? Well, you should be. Stay tuned for more blogs and updates.
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