Billionaire jewellery designer Nirav Modi and others are being investigated in connection with a Rs 280 crore money-laundering case following a complaint by the Punjab National Bank (PNB). Diamonds, jewellery and gold worth Rs 5,100 crore has been seized from Modi and the Congress is targeting India’s Prime Minister Narendra Modi, saying the PM should not escape responsibility for the banking scam worth Rs 11,400 crore.
NEW DELHI – Even as the Enforcement Directorate conducted multiple searches in connection with a Rs 280 crore money-laundering case against billionaire jewellery designer Nirav Modi and others following a complaint by the Punjab National Bank (PNB) and seized diamonds, jewellery and gold worth Rs 5,100 crore, the Congress targeted PM Narendra Modi, saying he should not escape responsibility for the banking scam worth Rs 11,400 crore.
With the government under Opposition fire, Union Minister Ravi Shankar Prasad, told the media that Nirav Modi was not part of the delegation to Davos led by the PM.
As the fraud unfolded, the Congress today released a letter dated July 26, 2016, revealing how the PMO knew then of the scam in the making.
The letter by complainant Hari Prasad flagged “financial fraud” worth thousands of crores by Nirav Modi’s uncle Mehul Choksi, Chairman and MD, Gitanjali Gems, and sought action.The PMO acknowledged the complaint and referred it to the Registrar of Companies (ROC) for action. The ROC did not act. Nor did the PMO follow up.
Attacking the PMO for inaction, Congress media head Randeep Surjewala, said: “Though the complaint was only against Mehul Choksi, the fact remains that Choksi is the uncle of Nirav Modi and both are joint shareholders in the company mentioned in the complaint .”
Though the BJP sought to pin the blame on the Congress, saying the scam began unfolding in 2011, the Congress retorted: “When did the PNB issue letters of understanding to “chhota Modi”? Is it not true that as per conditions of the letter of understanding the payment had to be made within 90 days? Who has been in power in India for those 90 days? The fact is the BJP can’t escape responsibility.”
The Congress, while pointing to absconding Vijay Mallya and Rishi Agarwal, bank defaulters, said, “Loot and run away has become a character under this government. When the PMO was in the know of the scam as of July, 2016, why did it not act? Who is protecting Nirav Modi?”
Surjewala alleged the bank loot involved 30 banks, including the SBI, Bank of Baroda, Vijaya Bank and Overseas Bank of India. “More scams will be unravelled soon.” The Congress alleged that under the Narendra Modi government, “the system’s bank fraud detection ability and the risk management capacity had collapsed. “Experts say this is a potential Rs 30,000 crore scam. You will soon know,” he said.
The Congress further asked who had tipped off Nirav Modi to flee India and why was he not arrested when the PNB had on January 29 this year asked the CBI to issue lookout notices against him.
“We also want to know why outstanding loans to Nirav Modi were not converted into NPAs and were instead restructured? It’s equally troubling to note that Nirav Modi was in PM’s business delegation to Davos.” The Congress said the PM could not escape responsibility by fielding ministers “unrelated” to the matter. “The PM will have to answer this time,” Surjewala said.
Who is protecting Nirav Modi?: Congress
Loot and run away has become a character under this government. When the PMO was in the know of the scam as of July 2016, why did it not act? Who is protecting Nirav Modi? — RS Surjewala, Cong spokesperson
Guilty will not be spared: BJP
No one, irrespective of stature, will be spared… Taxpayers’ money won’t be allowed to go waste. — Ravi Shankar Prasad, Union minister
