The Congress today launched an all-out attack on the NDA government over the alleged multi-crore PNB fraud involving Nirav Modi, saying a scam of such magnitude could not have taken place without "top-level protection", and questioned the prime minister's silence on the issue.
The Congress said it would discuss the issue with other parties in Parliament and explore the option of making a united demand for a joint parliamentary committee (JPC) probe into the issue.
Leading the charge was Congress president Rahul Gandhi who questioned the prime minister's silence and asked him to explain why it had happened and what steps were being taken to ensure the banking system was safe in India.
The Congress chief rejected the BJP charge that he had personal ties with Nirav Modi and had attended his promotional event, saying "they are trying to divert the issue. There is nothing like that."
"The fact of the matter is that the prime minister has, through his actions, destroyed the financial system of this country. He has demonetised the economy. He has taken money from people's pockets and put it into the banking sector and now his friends and cronies are stealing it from the banking sector and the prime minister is not saying anything," he charged.
The Congress Steering Committee, which functions in place of the Working Committee, also adopted a resolution asking the prime minister to tell the nation the reasons for "failure of the fraud detection ability" of the entire banking sector and the finance ministry.
The Steering Committee, which fixed that the party's plenary session would be held in Delhi on March 16, 17 and 18 to decide the future strategy of the Congress, said the "biggest bank scam" has exposed the complete failure of "regulatory mechanism" and "fraud detection ability" of the banking sector and the failure of oversight by the Reserve Bank of India and the finance ministry.
"The manner in which thousands of crores of rupees of public money was looted with impunity and the complete failure of entire risk management system tell its own story of favours extended and protection granted," it said.
"The truth is that 'Bank Scam' has exposed the 'culture of crony capitalism' that has thrived and flourished under the watch of the Modi government," the panel said.
The Steering Committee also called upon the prime minister to apprise the nation of complete facts about the "biggest bank scam", instead of remaining silent.
"It must be brought out how the entire banking system was duped through 'Letters of Understanding' under the watch of Modi Government and why all authorities like Finance Ministry and other agencies were found wanting in preventing the loss?
"The Prime Minister must also tell the nation how a fraud of this magnitude escaped the eyes of all the auditors and investigators conducting 'statutory audit', 'internal audit', 'concurrent audit' and even the RBI's own audit?" said the Committee in its resolution.
Gandhi, after the meeting, accused the central government of constantly refusing to accept its responsibility and alleged that the prime minister was "destroying" the economy through his actions, starting from demonetisation.
"The prime minister will have to come out and tell what happened (on Nirav Modi) and why, and how did it happen? And what is he going to do about it," he told reporters after the first meeting of the Congress steering committee that will function in place of the Congress Working Committee (CWC), the highest decision making body of the party.
Congress communications in-charge Randeep Surjewala said the Congress party, in the interest of people of this country, will speak to all like-minded parties in Parliament.
"We will show them the documentary evidence that is now available of the biggest bank scam in the history of India. We will form a joint strategy," he said.
Surjewala said Ghulam Nabi Azad and Mallikarjun Kharge will speak to all the parties to arrive at a strategy either of a demand of the JPC or something else to be decided jointly by opposition parties.
"We will place all the facts and we will in order to demand accountability of the government, will be raising the issue vociferously in Parliament till the Modi government answers to the people of the country," he said.
Gandhi said that instead of spending an hour-and-a-half explaining to children how to take exams, the prime minister should explain to the people of India what is going to be done to Nirav Modi and "what is he going to do to make sure that the banking system is safe".
The Congress chief said the defence minister and social justice minister were briefing on the issue, but "the FM and the PM, who are responsible, have not spoken a word about it".
He said he agreed with former finance minister P Chidambaram who said during the meeting that a scam of this level which the prime minister "is ignoring", "cannot have been committed without high-level protection".
"It must have been known to the people in government beforehand. Otherwise, it is not possible because the amount is so huge," he said.
Surjewala said Rahul Gandhi at the meeting emphasised that composition of AICC must reflect a harmonious blend of experience of senior leaders and vitality and dynamism of the youth. He also said that women, SCs, STs and backward classes need to be considered sacrosanct and given a first priority.
While expressing concern on the jobless growth as also the ongoing agrarian crises in the country, he said the party chief said there was no option but to address the issue of jobless growth and empowering farmers and farm labourers.
The Congress chief also emphasised on challenges faced by the country as also the Congress party both ideologically as also organisationally.
"Through this plenary session Congress Party will attempt to put up a vision and a viewpoint as also a way forward for the country problems that the country faces today," he said.
Earlier in the day, Congress leader Kapil Sibal held the BJP responsible for the Rs 11,400-crore scam and accused Prime Minister Modi of institutionalising "crony capitalism".
He also charged the prime minister and his government with bringing the economy to its knees, and warned that under him the country's economy would get bad name internationally.
He also took a dig at the prime minister, alleging that while he was "sleeping" as the country's watchman, thieves were fleeing with the nation's wealth.
Nirav Modi, 46, a regular feature on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and Gitanjali Group promoter Mehul Choksi on January 31, for allegedly cheating the state-run PNB to the tune of Rs 280 crore.
The bank subsequently sent two more complaints to the CBI on Tuesday, saying the scam was worth more than Rs 11,400 crore.
The jewellery designer is understood to be a citizen of the country but his brother Nishal and wife Ami are not Indian nationals. They all left India between January 1 and 6, the CBI had said.
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