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“Modi’s 2 Billion Dollar Scam” Big Fat Corporate Scandal #3 Nirav Modi’s PNB loan Scam Nirav modi is a prominent jeweler with global presence.Punjab National Bank officials at a Mumbai branch colluded with Nirav Modi and his uncle Mehul Choksi to issue unauthorized Letter of Undertakings without proper collateral. LoUs are guarantees given by one bank to another bank for short-term loans. The funds obtained were not used for their intended purpose of paying suppliers but instead diverted to shell companies and used for personal gains and expanding the jewelry business PNB discovered the fraud when Modi’s companies requested further LoUs in 2018. PNB filed a complaint against Modi with CBI & ED launched a money laundering investigation several PNB employees were arrested due to cheating.Both Modi and his uncle flew away from India before the scam came to light.Later Modi was arrested in London in March 2019.