ZODIACLOG
In one of the most jaw-dropping financial scandals in Indian history, fugitive diamantaires Nirav Modi and Mehul Choksi pulled off a meticulously planned scam worth over ₹14,000 crore, exposing glaring loopholes in the country’s banking system.
The duo didn’t just exploit a single crack in the system—they bulldozed through it. They secured unauthorized Letters of Undertaking (LoUs) from Punjab National Bank (PNB) without providing any collateral, enabling them to obtain overseas credit from foreign banks. These LoUs allowed them to bypass conventional banking procedures and raise massive sums of money from abroad—undetected for years.
Investigators from the Enforcement Directorate (ED) later discovered that Modi and Choksi had funneled the funds through a vast network of over 40 shell companies. These dummy entities helped them launder more than ₹5,000 crore, covering their tracks in a sophisticated financial maze.
Both men fled India in early 2018—just before the scam blew up in public view—triggering one of the largest international manhunts in modern economic crime. While Nirav Modi remains imprisoned in the UK, facing extradition trials, Mehul Choksi was recently arrested in Belgium, sparking fresh hope of justice being served.
This case didn’t just stain the reputations of India’s elite jewelers—it sent shockwaves through the financial system and raised critical questions about the robustness of oversight in public sector banks.
As authorities close in on the accused, the PNB scam remains a chilling reminder: without rigorous checks and digital trail monitoring, even the strongest institutions can fall prey to internal collusion and unchecked ambition.
For a deep dive into how Modi and Choksi orchestrated this financial heist, you can read the full report on Moneycontrol here.
