How Gujarat Businessmen Did Fraud ?| Nirav Modi, Abg Shipyard, #gujaratinews #gujarati
Mr. Sparsh Bagga recently posted a video on YouTube titled “How Gujarat Businessmen Did Fraud?” In the video, he exposed four cases of fraudulent activities committed by prominent businessmen in Gujarat. These include Nirav Modi, ABG Shipyard, Mehul Choksi, and Nitin Sandesara. These revelations have serious implications for the Indian economy, and it is essential to conduct thorough investigations into cases of fraud and hold those responsible accountable for their actions.
Nirav Modi, a jeweler, defrauded Punjab National Bank of nearly $2 billion. The fraud was committed through fraudulent Letters of Undertaking (LoUs) issued by the bank. An LoU is a guarantee given by a bank to a foreign bank for a buyer’s credit. Modi obtained these fraudulent LoUs and used them to obtain credit from several banks, which he then siphoned off. Modi fled the country before the fraud was detected and is currently a fugitive.
ABG Shipyard, a company that operates in the shipbuilding industry, allegedly siphoned off funds from the Indian banking system. The company obtained loans from several banks, including State Bank of India, Punjab National Bank, and ICICI Bank. The company then defaulted on the loans, and investigations revealed that the funds had been diverted to shell companies in tax havens.
Mehul Choksi, a diamond merchant, allegedly defrauded several banks, including Punjab National Bank, of over $1 billion. The fraud was committed through fraudulent LoUs issued by the bank, similar to the Nirav Modi case. Choksi fled the country before the fraud was detected and is currently a fugitive.
Nitin Sandesara is the owner of Sterling Biotech, a company that allegedly committed fraud worth over $1.6 billion. The company obtained loans from several banks, including Andhra Bank, Bank of Baroda, and Indian Overseas Bank. The company then diverted the funds to shell companies, which were used for personal expenses.
After discussing these cases of fraud, Mr. Bagga compared the tax payment in Gujarat and Delhi. He pointed out that in Delhi, there are only 43 lakh taxpayers who paid more than Rs. 1.43 lakh crore in tax, while in Gujarat, there are 74 lakh taxpayers who paid only Rs. 49,000 crore in tax. This indicates that Gujarat taxpayers are paying significantly less tax than their counterparts in Delhi.
Lower tax payments in Gujarat could lead to reduced revenue for the government, hindering its ability to fund essential services and infrastructure development. This could have long-term consequences for the economic development of the state and the country as a whole. Moreover, fraudulent activities by businessmen can undermine public trust in the banking system and reduce investment.
It is essential to take measures to strengthen regulatory oversight and ensure compliance with ethical business practices. This includes enhancing the monitoring of bank loans, improving transparency in financial transactions, and promoting accountability for fraudulent activities. Additionally, the government must ensure that tax collection is more efficient and effective, reducing the tax gap and increasing revenue.