PNB scam goes up by more than Rs 1,300 crore, fraud now estimated at Rs 12,700 crore


The PNB has informed the Bombay Stock Exchange that the unauthorised transactions by Nirva Modi and Mehul Choksi could go up by more than Rs 1,300 crore taking the estimated amount of fraud to Rs 12,700 crore.

The bank made the revelation in its filing to the BSE on Monday. It was in a similar filing before the BSE on 14 February, when the PNB had first revealed the financial fraud worth $1.77 billion (Rs 11,400 crore).

In its regulatory filing, “…We have to inform that quantum of reported unauthorised transactions can increase by $204.25 million (approximately).” At the current exchange rate, the amount comes to around Rs 1,323 crore.

Following the filing, Punjab National Bank shares slumped as much as 9 percent on Tuesday to hit their 52-week low level in morning trade, reported PTI. Shares of the company opened weak at Rs 107.80, then cracked 8.75 per cent to a 52-week low of Rs 102.10 on the BSE. Similar movement was seen on the NSE too, where the stock opened at Rs 106.80, then fell to its 52-week low of Rs 102, down 8.92 per cent over its previous close.

Nirav Modi was part of the CEO Meeting with Prime Minister Narendra Modi on 23 January, in Davos, where the latter had famously claimed that 600 crore people in voted him to power in 2014.

Nirav Modi, his wife Ami, brother Nishal and Mehul Choksi are partners in Diamonds R US, Solar Exports and Stellar Diamonds, which has shops in foreign locations such as Hong Kong, Dubai, and New York.

Nirav Modi’s younger brother Neeshal Modi is married to Mukesh Ambani’s niece Isheta Salgaocar. Mukesh Ambani had hosted a star-studded pre-wedding bash for the couple at his Mumbai home in 2016.

Nirav Modi, his uncle Mehul Choksi, wife and brother have now fled the country.