Nirav Modi / PNB Letter of Undertaking Fraud

A prominent Indian-born diamond businessman and fugitive became the subject of a massive international banking and loan fraud investigation involving Punjab National Bank (PNB). According to reports, the accused, alongside partners and in conspiracy with bank officials, fraudulently obtained Letters of Undertaking to make payments to overseas suppliers. While complaints alleged a total fraud reaching up to ₹28,000 crore, potential losses to the bank were reported to be up to ₹11,000 crore. The Central Bureau of Investigation and the Enforcement Directorate launched probes, registering multiple FIRs, seizing assets, and searching for the accused.

As the scandal unfolded in early 2018, the accused left India and sought refuge internationally, first in locations like Hong Kong and later applying for political asylum in the United Kingdom. Indian authorities formally requested his arrest and extradition. After being located in London, he was arrested by local police in March 2019 and subsequently remanded in custody. His multiple bail applications were consistently rejected by UK courts.

Legal proceedings regarding extradition moved through various UK courts, culminating in December 2022 when the Royal Courts of Justice in London refused him permission to appeal his extradition to the UK Supreme Court and ordered him to pay legal costs. Meanwhile, Indian authorities and international bodies targeted his financial network. Swiss authorities froze millions in bank accounts, while Indian agencies seized properties, wind and solar power plants, jewellery, art collections, and luxury real estate worth hundreds of crores. In response to the crisis, the Reserve Bank of India halted the issuance of Letters of Undertaking for imports.

Not yet reported: The articles do not specify the final judicial outcome or sentencing details inside Indian courts since the extradition process is still pending.