Nirav Modi Scam in India

The Nirav Modi Scam was a high-profile financial scandal that came to light in India in 2018. Nirav Modi was a diamond merchant and jewelry designer who owned several companies, including the Nirav Modi brand. The scam involved fraudulent letters of undertaking (LoUs) issued by employees of the Punjab National Bank (PNB) to Modi's companies.

The scam involved the fraudulent issuance of LoUs, which are bank guarantees that allow importers to obtain loans from foreign branches of Indian banks. PNB employees issued these LoUs without proper collateral or documentation, resulting in fraudulent transactions. The fraudulent LoUs were issued for several years, and the total amount involved was around Rs 14,000 crore.

The scam came to light when PNB discovered the fraudulent LoUs and reported it to the authorities. The scam exposed the lack of internal controls and governance in PNB, as well as the weaknesses in the banking system. It led to a drop in PNB's stock price, and several top officials of the bank were suspended or dismissed.

Nirav Modi and his uncle Mehul Choksi, who was also involved in the scam, fled the country before the scam was exposed. They were later arrested in different countries and are facing extradition proceedings. In 2019, a special court in Mumbai declared Nirav Modi a fugitive economic offender and confiscated his assets.

The Nirav Modi Scam is one of the biggest financial scandals in India's history, and it has highlighted the need for better regulation and governance in the banking sector. It has also raised questions about the effectiveness of India's extradition laws and the need for better cooperation between countries to bring economic offenders to justice.