PNB fraud case: Congress accuses of PM letting 'Chhota Modi' escape

Congress Party on Thursday lambasted Prime Minister Narendra Modi on Nirav Modi's fraud case asserting that the "government couldn't do anything" despite the tip-off in 2016 of the loot.

Addressing the jeweller as 'Chhota Modi' in a press conference here, Surjewala said that Nirav was part of a delegation travelling with the prime minister despite "the complaint against him."

He further asked the Prime Minister Modi to take actions, adding that "otherwise Chote Modi will run away".

"On 26 July 2016, Prime Minister was handed with all papers regarding Nirav Modi and one of his relative. It was said that complaint had 42 FIRs. The Prime Minister Office acknowledged the complaint, they also sent registrar of companies to take some action. But in the end the government couldn't do anything. Modiji, take action, otherwise Chote Modi will run away," he added.

He asked how can Niravi Modi and Managing Director of Gitanjali Gems, Mehul Choksi dupe the entire banking system "under the nose" of Prime Minister Modi.

"How can Nirav Modi and Mehul Choksi dupe the entire banking system through forged Letters of Understanding under the nose of the Modi government? Who is responsible for biggest bank loot scam unleashed by chhota Modi?" asked Surjewala.

The Congress leader asked why the prime minister was quiet, adding that, "loot and run away" is the new motto of Prime Minister's government.

"The biggest bank loot scam has been exposed in the last 24 hours. Around 30 banks have lost money due to this scam," he said.

He added that Prime Minister Modi government mismanaged risk management system of the banking system.

Calling it the biggest bank scam since 71 years of independence, Surjewala said, "Many banks will have to pay collaterals".

Earlier on Wednesday, the Punjab National Bank had confirmed fraudulent activities at its branches in Mumbai, worth transactions USD 1771.69 million for the benefit of some account holders.

Managing Director of PNB Mehta said that the scam was started in 2011 and was detected in the third week of January this year, after which the PNB officials reported it to the concerned agencies.

Mehta further said that the Government of India is monitoring the situation and the bank is getting full support in nabbing the culprits.

PNB has also suspended 10 of its officials in connection with the case.

Modi had allegedly cheated the bank to the tune of Rs. 280.7 crore.

The Central Bureau of Investigation (CBI) had on Monday booked Nirav Modi, his brother Nishal Modi and the officials of PNB in this regard.

It has emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of PNB were in favour of Hong Kong branches of Allahabad Bank and Axis Bank, that helped facilitate Rs 280.7 crore fraud by Modi among others.

According to the official sources, Nirav Modi left the country on January 1.

CBI had received the complaint form PNB on January 28 and a case was registered in the case on January 31st.