The Finance Minister has said that jeweller Nirav Modi obtained his first fraudulent guarantee from PNB's Brady House branch in Mumbai on March 10, 2011 and managed to get 1,212 more such guarantees over the next 74 months. As per reports, companies linked to Nirav Modi obtained Letters of Undertaking (LoUs), which were used to get loans from overseas branches of Indian banks, up to five guarantees on a single day, with the help of rouge employees of the country's second biggest state-run bank. Commenting on the issue, Jaitley said, “The last fraudulent LoU was issued on May 23, 2017.
During these six years, 53 genuine (non-fraudulent) LoUs were also issued to Nirav Modi Group - the first being on March 5, 2011 and last on November 6, 2017.” “The fraudulent LoUs had a validity of up to one year. Payments due in January this year were against LoU issued in February last year,” he said.