Another banking fraud out in the open, bring out white paper on banking system, says Congress

New Delhi, Feb 18: The Congress today alleged "fraudsters" were linked to the "highest echelons" of the BJP-led NDA and urged the government to bring out a white paper on the banking system which it said had witnessed scams involving over Rs 61,000 crore in the last five years.

"Bank frauds are tumbling out of the closet faster than you can say Jack Robinson," Congress spokesperson Manish Tewari said, alleging that another banking fraud was now out in the open.

Referring to the Rs 11,400-crore scam in which billionaire jeweller Nirav Modi and his uncle Mehul Choksi allegedly acquired fraudulent letters of undertaking from state-owned Punjab National Bank, Tewari said while the "Modi-Choksi tango" was still going on, reports had emerged about another banking fraud.

Vikram Kothari, the owner of Rotomac pens, owes Rs 800 crore to a consortium of Indian banks and was now untraceable, he said.

The frauds in the Indian banks are growing every day, the former Union minister said, claiming that according to Reserve Bank of India data, Rs 61,260 crore of banking frauds had taken place in the last five years.

"Data released by the RBI show that Rs 61,26o crore banking frauds have taken place in the last five years, and out of these five years, the BJP-led NDA has been in power for four years. The linkages between these alleged fraudsters and the highest echelons of the BJP raise some very serious questions about the health of the Indian economy," he told reporters.

Therefore, the Congress party "demands a white paper on the Indian banking system from the government," he said, adding that the BJP-led NDA should direct all banks to publish and declare the name of fraudsters and details related to NPAs ( non-performing assets). The total NPAs of all public and private banks were worth Rs 8,36,782 crore as of September, 2017.

PTI