PNB scam: CBI arrests Rajesh Jindal in the case

PNB scam
image credit: zeenews

In the Punjab National Bank scam, CBI also arrested Rajesh Jindal who was head of the branch during 2009-11. This is the case of $1.77 billion or ₹ 11400 crore fraud in which billionaire Nirav Modi and his relatives are involved. He was the branch head of PNB Brady House, Mumbai from August 2009 to May 2011.

He was responsible for the issuance of LoUs without sanctioned limits to Nirav Modi group firms. This practice was started during his tenure. He is currently the GM Credit of PNB Head Office, New Delhi.

Other people who are arrested in this case are Vipul Ambani, Meehul Choksi, Executive Assistant Kavita Mankikar, Senior Executive Arjun Patil, CF0 of Nakshatra and Gitanjali Group Kapil Khandelwal.

PNB scam
image credit: indiatoday

What is LoU?
LoU stands for the letter of undertaking. An LoU is a bank guarantee. Under this, the issuing bank allows customer to raise money from Indian banks having branches abroad in form of short-term credit. If there is default then the bank issuing the LoU has to pay the liability to credit giving bank along with accruing interest.

As per the short-term credit, it is meant for A short period only. In case of Nirav Modi, the term of the loan was allegedly extended far beyond the decided rule.



Please enter your comment!
Please enter your name here