Nirav Modi: A Case Study on Banking Frauds and Corporate Governance

Abstract

In August 2018, Interpol and the Indian government filed charges against Belgian businessman Nirav Deepak Modi, who is wanted for illicit breach of confidence, deceiving, and dishonesty. The charges include illegal property dealing, corruption, criminal conspiracy, money-laundering, cheating, embezzlement, and contract breaching. Nirav is under investigation in connection with Punjab National Bank's $2 billion fraud scandal, later in March 2018, he filed for bankruptcy in The United States of America. Finally, in June 2018, he was traced in the United Kingdom, where he is living by taking political asylum. Further, in June 2019, the total assets of US$6.6 million were frozen in his Swiss Bank Account. Corporate Governance initiatives were laid down by government officials and intervention by reserve Bank was seek in the case to avoid future occurrence of such fraudulent practices.