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Nirav Modi & PNB Bank Fraud (₹13,000+ crore)

📅 Exposed in 2018💸 ₹13,000 Cr🏦 Banking / Corporate Fraud

Case Summary

Diamond merchant Nirav Modi, with uncle Mehul Choksi, allegedly used fraudulent Letters of Undertaking from Punjab National Bank's Brady House branch to obtain credit from overseas bank branches.

Year

2018

Fraud Amount

₹13,000 Crore

📖 What Happened

Diamond jeweller Nirav Modi, along with his uncle Mehul Choksi, was accused of orchestrating one of India's largest banking frauds against Punjab National Bank.

Investigators alleged that fraudulent Letters of Undertaking were issued from PNB's Brady House branch in Mumbai without proper collateral, allowing linked firms to obtain overseas credit.

The case triggered major reforms in how Indian banks monitor SWIFT-linked transactions and remains one of the most cited examples of large-scale institutional banking fraud in India.

⚠️ Warning Signs to Watch For

Unusually high returns promised with zero risk
Bank officials colluding to bypass standard verification
Loans granted without proper collateral or documentation
Transactions happening through undisclosed back-channel systems (e.g. SWIFT without CBS linkage)

🛡️ How to Protect Yourself

Always verify investment products through SEBI SCORES or RBI's website
Never sign documents for loans or credit without reading every clause
Report suspicious bank insider activity to the bank's vigilance department or RBI

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