'Crony capitalism' flourishing in BJP rule: Prakash Karat

PNB has suspended 10 officers over the scam and referred the matter to CBI for investigation.

With billionaire jeweller Nirav Modi duping the Punjab National Bank (PNB) and fleeing the country, CPI (M) leader Prakash Karat has said that 'crony capitalism' is flourishing under BJP-led government at the Centre.

The Enforcement Directorate on Thursday launched a nationwide raid on the offices, showrooms and workshops of Nirav Modi. ED has seized assets amounting to Rs 5100 crore, which include diamond jewellery, gold and cash from Modi's offices, showrooms and diamond workshops in Mumbai, Surat (Gujarat) and New Delhi.

Speaking to ANI, the CPI (M) leader demanded comprehensive inquiry in the mater, so that the culprits involved in the said scam, meet the justice.

"It shows a type of crony capitalism flourishing in Prime Minister Narendra Modi Government," Karat said.

"Recently, this gentleman was photographed with the Prime Minister at Davos. Like Vijay Mallya, will businessman Nirav Modi also be allowed to escape the law? Want comprehensive inquiry in the matter,' he added.

The government on Thursday slammed Congress for using 'chhota Modi' remark to target the government over Rs 11,400-crore Nirav Modi fraud case.

The ED has also written to external affairs ministry to revoke the passports of Nirav Modi and his partner Mehul Choksi, according to officials.

The state-owned bank said it had detected a $1.77 billion fraud in which billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one of its branches for overseas credit from other Indian lenders. PNB has suspended 10 officers over the scam and referred the matter to CBI for investigation. It is learnt that Modi - whose operations are spread across Europe, the US, Middle East and Far East besides India - has written to PNB and other banks that he would return their outstandings.

OneIndia News