PNB Fraud: How Do Businessmen Like Nirav Modi Flee?

If money is not recovered from Nirav Modi, who will bear the brunt?

Nirav Modi knew about the FIR filed by CBI and left the country, according to reports.

(Photo: The Quint)

Punjab National Bank's Rs 11,300-crore scandal shook the business world. Nirav Modi, the accused of the scam, fled the country. According to investigative agencies, the diamond trader is now in New York, US.

According to media reports, Nirav Modi got to know about the raids before the CBI filed an FIR – and promptly left the country.

The Delay by Enforcement Directorate

Nirav Modi is not only accused of the Rs 11,300-crore scam, but another FIR for Rs 280 crore has been filed against him by the ED.

The ED is now conducting raids on Modi’s properties in Mumbai and Delhi. It registered an FIR on 31 January,

It is surprising how investigating agencies manage to crackdown on small scamsters, but wealthy businessmen flee. Something similar happened in the case of liquor baron Vijay Mallya. As soon as Mallya found out that the CBI and the ED were investigating him and are about to take action, he fled to London.

The same thing happened with former IPL commissioner Lalit Modi. He fled before actions were taken against him and is now living a comfortable life.

Punjab National Bank says that the scam was going on since 2011. It is also surprising that Vijay Mallya's loan scam and the Winsome Diamond scam happened via PNB.

The bank says that the recovery process has started and the money will be recovered soon. But we all know how complex these procedures are and the time it takes to recover the amount. Vijay Mallya is a recent example.

Who Will Pay for the Damage?

Banks have already started debating on who will bear the loss of crores of rupees. According to PNB’s Letter of Undertaking, many banks lent the money. If Nirav Modi does not return they money, who will bear the brunt?

Many such questions are unanswered.

(This story was originally published on Quint Hindi)