Rahul Gandhi targets PM Modi over new bank fraud

Billionaire jewellers Nirav Modi and Mehul Choksi, as well as Rotomac Pens promoters, have been accused of cheating public sector banks

As yet another bank fraud came to light, Congress President Rahul Gandhi on Saturday hit out at the Modi Government alleging that the Delhi-based diamond jeweller involved in the scam “disappeared” like Nirav Modi and Vijay Mallya while the government looked the other way.

He said the promoter of Dwarka Das Seth International, who was booked by the CBI for an alleged fraud of Rs 3.89 billion towards Oriental Bank of Commerce, operated with the same modus operandi of fake LoUs as Nirav Modi. “Under Modi Ji’s ‘Jan Dhan Loot Yojana’, another scam! “390 Crore, involving a Delhi based jeweller. Same Modus operandi as Nirav Modi. Fake LOU’s.

“Predictably, like Mallya and Nirav, this promoter too has disappeared while the Government looked the other way,” he said on Twitter.
 

Gandhi has been using the hashtag ‘ModiRobsIndia’ to target Prime Minister Narendra Modi and his government over the cases of bank frauds.

The CBI yesterday booked Dwarka Das Seth International Pvt Ltd for an alleged bank loan fraud of Rs 3.89 billion  towards Oriental Bank of Commerce.
 

Six months after the public sector bank filed a complaint with the CBI, the agency booked the company, and Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh — all directors of the firm — and another company named Dwarka Das Seth SEZ Incorporation.

The company has availed various credit facilities from OBC between 2007-12, which swelled to Rs 3.89 billion during the period. The string of frauds came as an embarrassment for the BJP-led central government, which had come to power on an anti-graft plank and had often listed corruption-free administration as one of its main achievements.

Breaking his silence over the Rs 114 billion fraud in India’s second-biggest PSU bank, Prime Minister Modi yesterday warned of stringent action against those involved in financial irregularities and said loot of public money will not be tolerated.

“I want to make it clear that this government has been taking strict action against financial irregularities and will continue to take strict action,” he said at Global Business Summit.