English हिन्दी
Connect with us

India News

PNB scam: Here’s how Mehul Choksi and Nirav Modi orchestrated India’s biggest banking fraud

The arrest of Mehul Choksi has brought back focus on the Rs 14,000 crore PNB scam involving Nirav Modi and a network of fake credit guarantees.

Published

on

PNB scam

By Mohammad Javed Rasheedi

The arrest of fugitive businessman Mehul Choksi in Belgium has once again turned attention to one of India’s most significant financial frauds—the Punjab National Bank (PNB) scam. The Rs 14,000 crore fraud, which came to light in 2018, involved Choksi and his nephew Nirav Modi, who colluded with bank officials to illegally obtain credit guarantees using forged documents.

Choksi, who was reportedly living in Antwerp with his wife after securing residency in Belgium in late 2023, was arrested on April 12 from a hospital. His detention follows extradition efforts by Indian authorities, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), who have been pursuing him for years.

What was the PNB scam?

The fraud involved fraudulent issuance of Letters of Undertaking (LoUs) at PNB’s Brady House branch in Mumbai. Choksi’s firm, Gitanjali Gems and other entities linked to Nirav Modi, used these LoUs to obtain credit from foreign banks—far exceeding regulatory norms. These guarantees, worth thousands of crores, were issued without proper sanctions, security, or entries in the bank’s core system.

Investigations revealed that Choksi and Modi used the SWIFT network to communicate with overseas banks without updating PNB’s internal banking software, thereby bypassing oversight. This led to an estimated Rs 6,344 crore loss to PNB alone, as multiple Indian banks including SBI and Axis Bank released funds based on the fraudulent LoUs.

Timeline of the scam’s discovery

The scam began unravelling in early 2018 when employees from companies like Diamonds R Us, Solar Exports and Stellar Diamonds requested LoUs and were denied due to lack of margin security. Upon further checks, PNB discovered that such requests had been routinely granted in the past without collateral.

PNB filed a complaint with the CBI on January 29, 2018, naming Nirav Modi, Mehul Choksi and other accomplices, including bank officials. The initial fraud amount stood at Rs 280.7 crore but ballooned to over Rs 14,000 crore within months.

Nirav Modi first received a fraudulent LoU in March 2011 and went on to obtain over 1,200 such guarantees. The ED found that dummy companies abroad were used to funnel money and devices used for these transactions were allegedly destroyed by Nirav’s brother, Nehal Modi.

Modi fled India before formal charges were filed, applied for bankruptcy protection in New York in 2018, and was arrested in London in March 2019. He continues to fight extradition to India.

Mehul Choksi was declared a fugitive in early 2018 and fled India citing medical issues. He acquired Antiguan citizenship in 2017 and later tried to flee to Cuba in 2021. He was intercepted in Dominica and later returned to Antigua. He then reportedly moved to Belgium for medical treatment, where he was arrested following India’s renewed extradition request.

The Enforcement Directorate has seized assets worth Rs 2,362 crore linked to Choksi, spread across Thailand, Dubai, Japan, the US, and other locations. Coordination is ongoing with international authorities to recover and repatriate more assets.

India News

PM Modi assures no discrimination in women’s quota, delimitation debate intensifies in Parliament

PM Narendra Modi has assured that women’s reservation will be implemented without discrimination, amid a heated debate over delimitation in Parliament.

Published

on

PM modi

Prime Minister Narendra Modi has assured that there will be no discrimination in the implementation of women’s reservation, as Parliament witnessed a sharp debate over the proposed linkage between the quota and delimitation exercise.

During the ongoing special session, the government reiterated its commitment to ensuring fair representation while addressing concerns raised by opposition parties regarding the timing and structure of the legislation.

The proposed framework aims to reserve 33 percent of seats for women in the Lok Sabha and state assemblies. However, its implementation is tied to a fresh delimitation exercise, which is expected after the next census.

Opposition questions timing and intent

Opposition leaders have raised concerns that linking the women’s quota to delimitation could delay its implementation. They argue that the process of redrawing constituencies may push the actual rollout further into the future.

The issue has triggered a broader political confrontation, with multiple parties questioning whether the move could alter representation across states.

Some critics have also alleged that the delimitation exercise could disproportionately benefit certain regions based on population, a charge the government has rejected.

Government reiterates commitment to fair implementation

Responding to these concerns, the Centre has maintained that the reforms are necessary to ensure accurate and updated representation based on population data.

Leaders from the ruling side have repeatedly emphasized that the process will be carried out transparently and without bias. The assurance that there will be “no discrimination” is aimed at addressing fears among states and opposition parties.

The debate marks a key moment in Parliament, with both sides engaging in intense exchanges over one of the most significant electoral reforms in recent years.

Continue Reading

India News

Give all tickets to Muslim women, Amit Shah says, attacking Akhilesh Yadav on sub-quota demand

A sharp exchange between Amit Shah and Akhilesh Yadav in Parliament over sub-quota for Muslim women highlights key divisions on women’s reservation implementation.

Published

on

A heated exchange broke out in Parliament during discussions on the women’s reservation framework, with Union Home Minister Amit Shah and Samajwadi Party chief Akhilesh Yadav locking horns over the demand for a sub-quota for Muslim women.

The debate unfolded as the government pushed forward key legislative measures to implement 33% reservation for women in the Lok Sabha and state assemblies.

Akhilesh Yadav argued that the proposed reservation must ensure representation for women from marginalised communities, including Other Backward Classes (OBCs) and Muslim women. He said that without such provisions, large sections could remain excluded from political participation.

He also questioned the timing of the bill, alleging that the Centre was avoiding a caste census. According to him, a census would lead to renewed demands for caste-based reservations, which the government is reluctant to address.

Government rejects religion-based quota

Responding to the demand, Amit Shah made it clear that reservation based on religion is not permitted under the Constitution.

He stated that any proposal to provide quota to Muslims on religious grounds would be unconstitutional, firmly rejecting the idea of a separate sub-quota for Muslim women within the broader reservation framework.

The government has maintained that the existing framework already includes provisions for Scheduled Castes (SC) and Scheduled Tribes (ST) women within the overall reservation structure.

Wider political divide over implementation

The issue of sub-categorisation within the women’s quota has emerged as a major flashpoint, even as most opposition parties broadly support the idea of women’s reservation.

Samajwadi Party leaders reiterated that their support for the bill depends on inclusion of OBC and minority women, while the government continues to defend its constitutional position.

The debate is part of a broader discussion during the special Parliament session, where multiple bills linked to delimitation and implementation of the women’s quota are being taken up.

Continue Reading

India News

No state will lose a seat, Centre assures as delimitation debate takes centre stage in Parliament

Parliament’s special session begins with key focus on implementing women’s reservation and delimitation, setting the stage for major electoral changes.

Published

on

Parliament

A special session of Parliament commenced on Thursday, with the Centre set to take up crucial legislation related to women’s reservation and delimitation of constituencies. The session, scheduled over three days, is expected to witness intense debate as the government pushes forward its legislative agenda.

At the centre of discussions is the proposal to operationalise the women’s reservation law, which seeks to allocate 33 percent of seats in the Lok Sabha and state assemblies to women. The law, passed earlier, requires enabling provisions before it can be implemented.

The rollout of the reservation is closely tied to the delimitation exercise — a process that redraws parliamentary constituencies based on updated population data. The implementation is expected only after the next census and delimitation process are completed.

The government is aiming to put in place the framework so that the reservation can be enforced in future elections, likely around 2029.

Delimitation and numbers at play

Delimitation is a key aspect of the proposed changes, as it will determine how seats are redistributed and which constituencies are reserved. The exercise is expected to reflect population shifts and may also involve an increase in the total number of Lok Sabha seats.

This linkage has made the issue politically sensitive, with several opposition parties backing women’s reservation in principle but raising concerns over how and when delimitation will be carried out.

Political reactions and expected debate

The session is likely to see sharp exchanges between the government and opposition. While there is broad agreement on increasing women’s representation, disagreements remain over the timing, process, and potential political implications of the delimitation exercise.

Some leaders have argued that delimitation could significantly alter the balance of representation among states, making it a contentious issue beyond the women’s quota itself.

The government, however, has framed the move as a step toward strengthening women’s participation in governance and ensuring more inclusive policymaking.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com