Answer:
Since 2014, India has witnessed several high-profile scams and controversies across various sectors. One of the most significant scams that has garnered widespread attention is the Punjab National Bank (PNB) fraud case involving billionaire jeweler Nirav Modi and his uncle Mehul Choksi.
Punjab National Bank Fraud Case (2018)
- Overview: The scam came to light in early 2018 when it was revealed that Nirav Modi and his associates had defrauded PNB of approximately ₹14,000 crore (around $2 billion) through fraudulent Letters of Undertaking (LoUs).
- Modus Operandi: The accused allegedly used these LoUs to obtain credit from foreign banks without the knowledge of PNB. This was facilitated by collusion with certain bank officials.
- Impact: The case raised serious questions about the banking system's regulatory oversight and led to significant scrutiny of the banking sector in India. It also resulted in a major investigation by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
- Consequences: The fallout included the resignation of top bank officials, a tightening of banking regulations, and a broader discussion about the need for reforms in the financial sector.
Other Notable Scams
In addition to the PNB fraud, there have been other significant scams and controversies in India post-2014, including:
- IL&FS Crisis (2018): The Infrastructure Leasing & Financial Services (IL&FS) defaulted on its debt obligations, leading to a liquidity crisis in the financial sector.
- NSEL Scam (2013-2014): Although it began before 2014, the repercussions continued into the following years, involving a ₹5,600 crore fraud in the National Spot Exchange Limited.
- Satyam Scandal (2009): While this occurred before 2014, its implications and legal proceedings continued to affect the corporate governance landscape in India.
These scams have had lasting impacts on India's economy, regulatory frameworks, and public trust in financial institutions.