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Updated on May 20, 2026news-current-topics

How did Nirav Modi manage the PNB scam?

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2 Answers

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Updated on May 7, 2026

Everybody wants to know who is Nirav Modi and it has become the question that the whole nation wants to know how did he manage 11400 crore scam with PNB?Nirav Modiis a billionaire jeweler who founded global diamond jewelry house in 2010. The face of 47 year old billionaire used to be very common on some of the world's leading fashion magazines and hosting Bollywoodcelebrities like Priyanka Chopra,who is the brand ambassador of his company.

The Gujarati entrepreneur is the founder of a lot of stores across the globe and has 16 jewellery stores in cities, including Delhi, Mumbai, Singapore, Beijing, Hong Kong, London and New York. He is brought up and grown up in an elite family in Belgium and after dropping out of Wharton Business School, he came to India to get trained in the business of diamonds by his uncle, Mehul Choksi whose name is also in this fraud.

According to the Central Investigation Agency, the CBI has received two complaints from Pujab National Bank. The bank has detected fraudulent transactions exceeding Rs. 11400 crores in which Modi and his jewelery companies are involved.

Punjab National Bank stated that Modi has used unauthorized letters of undertaking and made them en-cash at overseas branches of Indian banks. However, CBI officials say that there is no surprise he duped bank with the help of bank's employees.

 

 

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Answered on May 12, 2026

The Nirav Modi-PNB scam involved fraudulent Letters of Undertaking (LoUs) issued through Punjab National Bank’s systems without proper authorization and monitoring. According to investigations, loopholes in internal banking processes and misuse of the SWIFT messaging system played a major role. The scam became one of India’s biggest banking controversies because of the massive amount of money involved. It also triggered debates around banking oversight, corruption, and financial accountability. After the case became public, banking regulations and monitoring systems faced increased scrutiny. Honestly, the scam shocked many people because it exposed how large financial frauds can continue for years before being detected.

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