UPA's 80:20 gold scheme aided Choksi firms: BJP

NEW DELHI: Hitting out at the Manmohan Singh led-UPA regime, Union minister Ravi Shankar Prasad on Monday alleged that a scheme introduced by the then finance minister P Chidambaram aided jewellers like Mehul Choksi and Nirav Modi, the prime accused in the Rs 12,000-crore PNB fraud.

"There was a scheme 80:20 introduced in August 2013 and repealed in November 2014. On 16 May 2014, the date of the declaration of results, the then finance minister gave 'aashirvaad' to 7 private companies under 80:20 Scheme. One of those companies was Gitanjali," alleged Prasad.

The 80:20 scheme was launched in August 2013. Bowing to pressure from jewellers, the UPA government had eased some of the curbs, and private agencies were allowed to import gold under the scheme that mandated traders to export 20 percent of all gold imported while retaining 80 percent for domestic use. The measures were put in place at a time when the government was trying to curb gold imports to tame the current account deficit.

In November 2014, the NDA government removed restrictions on gold imports, scrapping the controversial 80:20 scheme amid allegations of misuse by half a dozen companies.

The scheme came under the scanner last week when on Thursday, members of a panel of the Public Accounts Committee (PAC) raised questions on it alleging that it was exploited by the fugitive duo of Choksi and Modi to launder money.

The sub-committee of the PAC on direct and indirect taxes, headed by BJP MP Nishikant Dubey, asked the top officials of the revenue department to share all file comments and examine the links of the 80:20 plan with the PNB fraud.

Sources said the members raised questions about the role of former finance minister Chidambaram and pointed to a Comptroller and Auditor General (CAG) report of 2016 which had shown how the scheme had caused revenue loss to the exchequer of around Rs 1.3 lakh crore.

Finance ministry officials are likely to share all details related to the 80:20 gold import scheme with PAC. All files and notings related to 80:20 gold scheme are likely to be shared within ten days, it is learnt.