There are so many zeros in 11500 crores that we can’t even count. But probably the biggest zero in this case is PNB bank, which didn’t realize that all this was happening behind their backs until the final moment.
So what’s his background like?
Nirav Modi is a flamboyant diamond and jewellery merchant (you may have seen the Lisa Hayden ad with his jewellery). His shops are everywhere and they’re across the world. Personally, Nirav is worth billions of dollars himself, and he’s defrauded the bank of more than $1.7 Billion. And much like Mallaya, he’s run to the US with no sign to be found. Right now, PNB bank don’t even know the extent of the situation, as he could have easily withdrawn billions more from others.
What did he do?
Here’s the official scoop – Nirav Modi convinced some junior level banker to give his company some LOUs. While this case came to light two weeks ago, the public came to know about it quite recently after it leaked. Bangalore jeweller, Hari Prasad was the first to bring the scam to light when he wrote a letter to the Prime minister’s office. In the letter, he mentioned 1000s of crores of money being taken by the Billionaire, and that he was going to flee the country forever. So the allegation is that Nirav Modi has been taking heavy loans without having assets to back it up.
When Jewellery businessman Hari Prasad sent over a complaint to SEBI, RoC, PMO and other offices, he got no response from them. In fact, they even closed his case without taking any action. It was suspected that Nirav knew some people working in these offices. When it came to PNB, Nirav also knew some junior level bankers who didn’t do a background check and didn’t store the LOUs in the correct manner. He also made friends with the Deputy GM of the PNB bank who conveniently retired.
WTF you sayin?
In simple words, he took out a bunch of money from the banks and paid off the bankers who were going to check him thoroughly. On the basis of this he borrowed tons of credit and scammed the whole country. He evaded the country on Jan 1, his brother on Jan 5 and his wife on Jan 6. He was last seen attending a conference in Davos on the 23rd of Jan and he’s been missing ever since.
The banks got about 5000 crores of jewellery after the government raided his properties and recovered most of his assets. The government is all out to catch him and extradite him back to the country. Their official stance is “no one, no matter how big, would be spared”. Just like Mallaya, he will be caught and put behind bars. He’s been reported to be staying at the JW Marriott Essex House on the 36th floor with his wife and kids. Although, we’re not quite sure whether he’s running away or not, he’s under the radar of governments, journalists and recovery agents.