Nirav Modi Case Study

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Nirav Modi is an Indian jeweler who is the founder of Nirav Modi global diamond jewelry house. In 2018, he has been accused of a $1.8 billion/Rs 11,400 crore fraud case and is being investigated into by the Central Bureau of Investigation in India. According to reports, it is said that Modi has been accused of colluding with certain employees working in Punjab National Bank to issue letters of undertakings which would help him become eligible for loans from other banks. A letter of undertaking is an instrument used in the banking industry which says that the bank would cover the individuals if they are not able to pay the loans. Based on this letter of undertaking, Modi was eligible for overseas loans from other banks in the country which …show more content…

Following the news about the scam, people have lost confidence on such government lending agencies as they have been alleged to divert the funds towards the richer individuals. In my opinion, the Central Bureau of |Investigation is doing a good job trying to come to the bottom of this case. Seizing all of the assets was the first step as to recover funds but the next crucial step would be locate Nirav Modi as he is nowhere to be found. He has left India in the month of January and he has only communicated back to the bank and with his employees via email about his situation and he has stated that he is not to be blamed for this scam. Giving reports back to the public on what is going on is very important in order to gain public confidence. After the news of the scam had come out, there were many investigations that have started to track back all of the misplaced funds. I strongly believe that this is a case of importance due to the magnitude at which it has rised and the problems that it has come with it. Such scams should be dealt with zero tolerance as they have a nationwide effect of the ideologies of people regarding the state run banking services and systems. The party at fault must be determined with correct evidence in order to bring

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