Bengaluru, Feb 28: Bank frauds by diamond traders and pen makers expose the culture of corruption and cronyism thriving under the BJP-led National Democratic Alliance (NDA) government, said Congress spokesperson Randeep Singh Surjewala on Tuesday.
"The biggest bank loot scam of Rs 22,606 crore and Rs 5,000 crore Jan-Dhan Loot Yojana of the NDA government have exposed the Prime Minister's claim on corruption," said Surjewala in a statement here.
Noting that "flout, fleece and fly" were the "Modi Operandi" under the NDA government, the party official said in 10 days, scams valued at Rs 31,691 crore have been exposed.
"Post-escape of Lalit Modi or 'Chhota Modi #1' and Vijay Mallya, another '#ModiRobsIndia' scam has hit our banking sector. First, Lalit Modi flew away after the government helped him on the sly to secure travel documents to Britain. Then, Vijaya Mallya escaped after duping Rs 9,000 crore," read the statement.
Lalit Modi is the former Indian Premier League (IPL) T-20 cricket chairman and Mallya a liquor baron and business tycoon.
In yet another scam, state-run Bank of Baroda lost Rs 6,400 crore in a forex deal. Two weeks ago, diamond traders Nirav Modi, who is "Chotta Modi #2", and his uncle Mehul Choksi also fled the country, duping about 30 banks of Rs 22,606 crore and common people of Rs 5,000 crore through a ponzi money-for-gold schemes - "Mangal Swarna", "Mangal Labh" and "Swarna Mangal Kalash".
As if this was not enough, Rotomac pen makers Vikram Kothari and his son Rahul Kothari duped many banks of Rs 3,695 crore.
"Another jewellery firm - Dwarka Das Seth Jewellery International Ltd defrauded state-run Oriental Bank of Commerce of Rs 390 crore through ponzi schemes and con letters of credits. 'Dupe the banks and leave for foreign shores with people's money" has become the buzzword," said Surjewala.
Observing that under the Modi government, the banking sector's risk management system, fraud detection ability and the regulatory mechanism were compromised, the Congress said prior knowledge to the Prime Minister's Office, Enforcement Directorate (ED), Ministry of Corporate Affairs, Serious Fraud Investigation Office and market regulator SEBI and their inaction led to the perpetration of the frauds.
"Detailed complaints on May 7, 2015; July 26, 2016 and May 3, 2017 were filed with the concerned authorities with complete inaction bordering upon complicity. FIRs were also submitted to EoW, Ahmedabad, Gujarat DCP...which met a similar fate," pointed out Surjewala in the statement.
Stating that the people wanted answers from Modi on the scams, the Congress said the government owed an explanation on how the banking system was bypassed and how the fraud escaped the four-stage audit system of banks -- statutory, internal, concurrent and central bank.
"How did the banking sector's 'risk management system and fraud detection ability' come to nought," asked Surjewala.