Bank frauds: Cong seeks RBI probe to fix accountability within 60 days

New Delhi: The Congress on Saturday hit out at the central government after yet another bank fraud involving a Delhi jeweller came to light and demanded that Prime Minister Narendra Modi fix accountability of those involved in such cases within 60 days through a probe conducted by the RBI.

The opposition party said the guilty in bank frauds should be brought to book as no one will invest in the country if questions are raised on its banking system and this will harm the country's growth.

Congress president Rahul Gandhi led the attack on the prime minister 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 389.85 crore 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 also raised the issue during his rally in poll-bound Karnataka to attack Modi, asking him to first explain how the money was taken away from the bank under his nose.

Congress leader Kapil Sibal demanded a thorough probe by the RBI into the alleged Rs 11,400-crore PNB fraud and said prime minister should assure the nation that accountability of the finance ministry, the Reserve Bank of India and the management of defaulting banks would be fixed within 60 days.

"Until the prime minister gives an assurance to the country, people will think that administration is supporting those who were indulging in bank frauds. The money defrauded be brought back, guilty be booked, those involved in the conspiracy are dismissed and action be taken against them. "If questions are raised on the country's economy and banking system, then no investment will come in the country and this will harm the country's growth...We demand that there should be an RBI probe in the matter (PNB scam) at the earliest," Sibal said.

He also sought to know why people like Nirav Modi, who were indulging in banking scam, were "allowed to escape the country".

"Country has faced a loss of around Rs 21,000 crore as of now and other banking frauds will also come out in a few days. Another Rs 390 crore OBC (Oriental Bank of Commerce) scam has also emerged.

"I am surprised that despite our prime minister being the most expensive 'chawkidar' (watchman), why are all these (banking frauds) happening under his nose," Sibal told a press conference here, taking a swipe at Prime Minister Narendra Modi over his refrain during poll rallies that he would act as a watchman for the country,

He said that if questions are raised on banking system, it impacts the country's economy and affects investment as international trade is done through banking system.

"Why is Modiji silent? Modi yesterday said that government will bring back those people who indulged in banking scams. Leave the issue of bringing these people back to country, we want to first know why these people were allowed to flee the country," Sibal said.