PNB fraud: Nirav Modi friend, Mehul Choksi uncle; code words used in biggest ever banking scam
PNB fraud: Nirav Modi friend, Mehul Choksi uncle; code words used in biggest ever banking scam
Property or Letter of Undertaking (LoU)? Friend or Nirav Modi? Property location or importer location?
In a fresh expose in the Rs 11,500-crore financial fraud in Punjab National Bank (PNB), the alleged accused bank employees and fraudsters had developed their own code language to execute the biggest ever banking scam.
Billionaire Nirav Modi was referred to as friend, while Mehul Choksi was uncle. LoUs were called properties and token was actually the margin money.
ALSO READ: PNB fraud: Know here modus operendi; LOU, SWIFT and CBS
There were code words for property value and location as well, Zee Business got this exclusive information through sources.
After Fitch, Moody's places PNB ratings under review for downgrade
Meaning:
Client needs an LoU of Rs 10 crore for an overseas importer in Hong Kong. He won't give any margin money for the LoU. See if you can make this LoU without maintaining any official record. Commission for this job would be 1% of the LoU amount.
Meanwhile, the CBI has made its first high-profile arrest in the alleged PNB scam on Tuesday, taking into custody Vipul Ambani, the head of finance of Nirav Modi's Firestar Diamond, officials told PTI.
As part of the multi-agency probe, an Executive Director and nine other senior officials of the Punjab National Bank (PNB) were grilled by the CBI in connection with the "fraudulent" guarantees issued by the bank in favour of nephew-uncle jeweller duo Nirav and Mehul.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.