State the case details of Punjab National Bank which was based on Values, Ethics and Professional Conduct and due to which Reserve Bank of India has to discontinue the practice of LOUs/FLCs for trade credits for Import i

Punjab National Bank Case Facts of the Case: Punjab National Bank (PNB) is one of the largest public sector banks in India. The scam of ₹11,300 Crores in the Punjab National Bank scam have come into the limelight. The PNB scam and irregularities, forgery commenced in the year 2011 and continued for six long years with the knowledge of a few banking officials of PNB. It is a case where Letter of Undertaking (LOU) from Punjab National Bank was taken by Nirav Modi without having a sanctioned credit limit or collaterals. The dispute mainly started due to illegal LOUs issued to Nirav Modi by few PNB banking officials. Chronology of the case Punjab National Bank filed an FIR against Nirav Modi, Mehul Choksi and other charged with criminal conspiracy and cheating amounting to the tune ₹11,300 Crores. Central Bureau of Investigation (CBI) was handed over the investigation into the matter. The Enforcement Directorate (ED) had registered a money laundering case against Nirav Modi and others under the provisions of PMLA based on the FIR registered by CBI under Sections 120-B r/w 420 of IPC, 1860 read with Section 13(2) read with 13(1) (d) of PC Act, 1988. The Enforcement Directorate seized some movable assets like diamond, gold and jewellery worth ₹56.74 billion from the house of Nirav Modi and his office. CBI after an investigation into the matter arrested two employees of Punjab National Bank and detained one representative of Nirav Modi Group. Simultaneously, Government of India suspended passport of Nirav Modi and Mehul Choksi for the involvement in the PNB Scam. Subsequently, the Central Bureau of Investigation arrested the Chief Financial Officer (CFO) and two Senior Executives of Nirav Modi firm. It also sealed the Nirav Modi's Assets. The Magistrate Court issued first bailable arrest warrant against Nirav Modi and Mehul Choksi. Enforcement Directorate on the same day filed a petition before the Special Court, Mumbai for seeking issuance of a Non-Bailable Warrant (NBW) against Nirav Modi and his firm. Enforcement Directorate moves before the Special Court to issue extradition proceeding against Nirav Modi. Government of India sent a letter requesting the UK authorities to initiate extradition proceedings against Nirav Modi. Government of UK took action on the request of the Government of India and the Westminster Court, London issued an arrest warrant against Nirav Modi. He was arrested in London by Scotland Yard Officers and produced before the Westminster Court. The accused Nirav Modi was sent to Her Majesty's Prison (HMP), Wandsworth till 29th March, 2019. The Westminster Court rejected the bail petition of the accused /fugitive offender - Nirav Modi on the ground that he may not appear before the Court on the fixed dates for further hearing of the matter. (29th March, 2019) After the plea made by Enforcement Directorate, Nirav Modi has been declared as Fugitive Offender by the Mumbai Court under the Fugitive Offender Act, 2018. Nirav Modi is currently in Wandsworth Prison in London, from which he is fighting for extradition charges. Action taken by RBI after detection of PNB fraud; Reserve Bank of India discontinued the practice of LOUs/ FLCs for trade credits for imports into India. RBI also ordered all the banks to reconcile transactions in Nostro accounts on a real-time basis so that unrecorded and illegal transactions can be identified immediately.