NIRAV MODI AND THE JEWELLERY BUSINESS
Diamonds are women’s best friend and maybe the worst nightmare for the banks in India!
The ongoing evolution of the scams, one thing is certain that such large decisions by the bankers and the financial channels cannot be made without the politicians becoming beneficiaries and business partners in it. It is yet to be seen which politicians were involved in these loans granted by the government undertakings and the public sector bank. We all get messages of linking Aadhar and a plethora of calls from the managers when there is a default on credit card payments, home loans, car loans and personal loans for meagre amounts. Yet, there are Nirav and Mehuls of the world and especially of India, who get away with such large sums, without winking an eye.
Internally speaking, the bank finalizes a balance sheet at the end of each day, there are documents called the blue sheets and the red sheets, which are constantly audited by concurrent auditors, internal auditors and the bank manager neither solely responsible for the losses that they reveal.
Further, the RBI gets a copy of these sheets each day which is reconciled in the larger financial parlance of the India Inc. How could they have missed this? The concept of letters of assurance and letter of credits are to create virtual money.
It is like PNB and the Indian banking sector have printed notes, extending themselves as RBI standing guarantee for its payment. Its virtually like you as an individual printing notes at home and extending yourself to be rich. And the fraud does reveal the same. All the involved bank managers must go to jail and the people in the ministry of that time, who had given credits over and above their sanctioned limits should be criminally implicated.