NIRAV MODI

-YOMI GOSAR
ROLL NO 18
 EARLY LIFE
-Nirav Modi was born in Palanpur, Gujarat, and grew up in Antwerp, Belgium.

-His family has been in the diamond business for several generations. 

-Mehul Choksi ,his uncle ,was the head of the Gitanjali group.
 CAREER
-After moving to India in 1989, and training in all aspects of the diamond trading
business, he founded FIRESTAR in 1999 (formerly known as firestone), a diamond
sourcing and trading company.

-In 2002, his company started manufacturing jewelery on a contract basis.

-In 2010 he launched a diamond store bearing his name in New Delhi's defence
colony, followed by one in Mumbai's kala ghoda. 17 other store openings followed
across the world.
-He became well known after he designed his “Golconda lotus necklace" with
an old, 12-carat, pear-shaped diamond as a centerpiece in 2010.

-In 2012, the Riviere of perfection, featuring 36 flawless white diamonds

weighing a total of 88.88 carats, was sold at sotheby’s hong kong auction.
GOLCONDA LOTUS NECKLACE

RIVERIE OF PERFECTION
 OTHER FACTS AND ACHIEVEMENTS
-He had the vision for a multinational Jewelery brand.

-Nirav used to pay people with cash -he would buy stock with cash and
give people advance cash payments.

-Around 2010 Nirav started researching catalougues –Sothebys, Christies in

Hong Kong and Asian markets. He started studying how pieces were
sold ,and the kinds of jewelery that people bought.

-2010:Nirav Modi was the 1st Indian jeweler to be featured on the covers
of Christie’s and Sotheby’s catalogues.

-His Jewelery became a status symbol.

-The Stretchable bangle was another milestone . When it collapsed it
looked like an intact bangle and when it was pulled the links would open up
which was very beautiful.

-Lived in Samudra mahal people of wealth and stature.

-He had hired Rosie Huntington Whitely who was a top

fashion model as the face of his brand.

 Rosie Huntington Whitely and

Nirav Modi
-2013: Featured on the Forbes list of Indian billionaires.

-Patents: Jasmine cut diamond, United States Design Patent USD763118S1,

JEWELRY DESIGN, United States Design Patent US D738,777 S.
 THE SCAM
-A letter of undertaking (LOU) is a provision of a bank guarantee. Under the
LOU, a bank allows it's customers to raise funds from the branch of an Indian
bank which is established overseas, in the form of a short term credit.

- He wasn’t providing collateral by bribing officials of Punjab National Bank

(PNB) in Brady house in south Bombay.

-By 2017 Nirav had already been taking out

letters of undertaking for approximately 6.5
years.

-There was a back log of 1.8 million dollars.

-Another thing that he did was that he would take diamonds and inflate
their value by selling them through financial vehicles called shell
companies.

-Every time a gem (diamond) moved from one shell company to another,
its price would be inflated.

-Nirav took shell companies to buy those diamonds gradually inflating their
value and earning the profit for personal use.
-Union Bank of India sued Nirav Modi in a Hong Kong court. The bank
demanded that Nirav Modi pay more than $5.49 million plus interest after
both his firms allegedly defaulted on repayments.

-February 2018, the Indian government’s Central Bureau of Investigation

(CBI) launched an investigation of Modi, acting on a complaint from
the PNB.

-But Nirav Modi with his family members had left the country much before
the FIR was filed.

-His properties in India, including jewellery, paintings, and real estate, worth
about Rs 523 crore (about $75 million) have been attached by the
Enforcement Directorate.
-CBI had alerted interpol to arrest the Modi family if spotted abroad and
their passports were suspended for 4 weeks.

-With the collapse of his brand,  Forbes removed him from their annual
billionaires list, and on 9 March 2018, estimated his current wealth to be
less than $100 million.

-On 20 march 2019, Modi was arrested in london after a warrant was
issued against him and has been in custody ever since.

-One of his employees claimed that if he’d gone public, maybe he could
have pledged his equity, raised some money, and finally paid the bank
back.
-Modi applied for bail in the UK High Court on May 31 which was rejected
as of October 2020. Nirav Modi is scheduled to appear in his ongoing
extradition trial on November 3. 

- -On 8th June, 2020, The Prevention of Money

Laundering Act (PMLA) Court has ordered a
confiscation of nearly Rs 1,400 crores worth
property of Nirav Modi.
 
 CURRENT STATUS OF THE SCAM
-The PNB officials deny all wrongdoing as of today too.
-Nirav Modi remains in prison in London fighting extradiction to India and
he too denies all wrongdoings.
-Some employees of his company have also been charged in connection to
the fraud.
-This corruption wouldn’t be possible without international finance
-Nirav Modi has become the symbol of corrupt india.
 CONCLUSION
-Nirav Modi has proved that an over-ambition of getting success either by hook
or crook could turn out to be a disaster in anyone's life. However, not as much
on himself, this scam had worse effects on the Indian banks, for whom, this
case is one of the biggest frauds ever.

-There is still hope that these Bad Boy Billionaires will knock their knees soon
in front of the judiciary someday. Such scams could only be controlled when
the banking sector frees itself from its corrupt and fraud officials and gets to
know these frauds before these fugitives take their flight to the UK or any other
luxurious destination.
Thank you!!