CONG-SCAM-NIRAVMODI

The Congress today stepped up its attack on the government over the PNB fraud allegedly involving designer jeweller Nirav Modi, claiming the country's "biggest bank loot scam" is pegged far bigger at Rs 21,306 crore with fresh revelations.

The opposition party also hit out at Prime Minister Narendra Modi for his silence on the issue, alleging that he did not act on the scam even after his office was informed about it by one Vaibhav Khuraniya on May 7, 2015.

Releasing letters purportedly written to various agencies in this regard, Congress communications incharge Randeep Surjewala asked why the BJP and government were silent on the issue and how accused Nirav Modi and Mehul Choksi were "allowed" to escape.
 

"India's biggest 'bank loot scam' has got bigger over the last 24 hours to Rs 21,306 crore as layers of the conspiracy got unearthed by the hour," he told reporters.

"No wonder, 'UDAAN' is the buzzword of Modi Government, wherein every scamster can 'fleece and fly' - 'unchecked and undetected'," he alleged.

Surjewala claimed everyone in the government, including the PMO, were aware of the fraud being committed.

"The Prime Minister's Office, Enforcement Directorate, Ministry of Corporate Affairs, Serious Fraud Investigation Office (SFIO), SEBI and two BJP state governments of Gujarat and Maharashtra were aware of the scam pursuant to a series of complaints filed as early as on May 7, 2015," he said.

Targeting the prime minister, he asked whether Narendra Modi knew accused Mehul Choksi, as he put out a video of the prime minister wherein he mentions "Mehul bhai" in his speech.

"Does Prime Minister know accused Mehul Choksi? If yes, why is Modi Government denying it? Did the PMO, PIB and MEA not tweet the picture of business delegation comprising of Nirav Modi with prime minister?," he asked.

The Congress leader said the entire audit and fraud detection mechanism failed to detect the fraud and asked whether it was "deliberate".

He said every bank goes through four kinds of audit - Statutory Audit (Looks into bank's balance sheet), Internal Audit (conducted by bank staff), Concurrent Audit (Audit of Bank transaction) and RBI Inspection, but "despite this, the entire fraud escaped everybody's attention. Obviously, someone was protecting this network of fraud".

Surjewala also alleged that the banks ignored the 'red flag' by rating agency CARE in June, 2016.

"How did the entire fraud escape the four stage audit system of Banks? Why did the banks not get alerted despite the withdrawal of ratings by rating agency CARE?," he asked.

"Why does the Modi Government not answer the five questions asked yesterday? Has the size of bank loot scam peaked to Rs.21,306 crore? What is the total loss to banks? Why is Government mum?," he asked.

The Congress also attacked Union minister Ravi Shankar Prasad, saying he should have done a little bit of homework on the Nirav Modi-Mehul Choksi Scam before defending the government.

"The CBI FIR clearly shows LoUs were issued in February 2017. Yet, the Modi Government prefers to live in denial," he said.

Surjewala, accompanied by party leaders Shaktisinh Gohil and Pawan Khera, said despite the entire fraud happening, Nirav Modi was in a business delegation at the World Economic Forum from January 23 to 26, 2018.

"The PMO, PIB and MEA tweeted the picture of business delegation comprising of Nirav Modi and others with prime minister and the law minister and the government feigns ignorance," he said.

Surjewala also said that since the scam came to light, the shares of PNB have suffered a major blow, with Rs 7,000 crore of its value being eroded due to the price fall.

He said if one adds the Rs 7,000 crore of value erosion in shares of PNB, in which the government owns 57 per cent holding directly and some more through financial institutions, the value of the scam touches Rs 30,000 crore.

"They refuse to speak a word on the biggest scam in Indias history which continues to unravel and increase," he said, adding that the health of banks and safety of money of people is a cause of concern and the prime minister must assure that money of depositors in the banks is secure and the Government of India will do everything to ensure that not a single rupee is lost.

To a question if the Congress is reaching out to other parties on this issue, Surjewala said, "We believe that the prime minister should first answer these questions and satisfy the doubts raised by 1.25 crore Indians, to whom he owes an explanation".

"It has been 48 hours. We expect Prime Minister to break his vow of silence on the most important and the biggest crisis affecting the banking sector and the second largest bank of the country. So, the prime minister must come forward and answer, and we will take necessary steps as corollary thereto," he said.