PRESS RELEASE Feb. 16, 2018
Randeep Singh Surjewala, Media Incharge, AICC; Shaktisinh Gohil, Spokesperson, AICC, Gourav Vallabh and Pawan Khera have issued the following statement to the press today:-
1. ‘Bank Loot Scam’ Has Peaked to Rs.21.306 crore
India’s biggest ‘Bank Loot Scam’ has got bigger over last 24 hours to Rs.21,306 crore as layers of conspiracy get unearthed by the hour.
Punjab National Bank has already admitted exposure of Rs.11,400 crore in the 293 ‘Letters of Understanding’ (LoUs). In addition, exposure of 30 Banks in loans extended to four companies i.e. ‘Firestar International Private Limited’, ‘Firestar Diamond Fze’, ‘Gitanjali Gems Limited’ and ‘Gitanjali Exports Corporation’ is Rs.9.906 crore. Copy showing details of these loans extended by each Bank to these companies is attached as Annexure A-1. Thus, total exposure comes to Rs.21,306 crore i.e. Rs.11,400 crore + Rs.9,906 crore.
In addition, PNB stock has depreciated eroding Rs.7,000 crore in value. Incidentally, Government owns 57% shares in PNB and the remaining is owned by financial institutions/common investors. If you add the erosion of value of 7,000 crores, total exposure comes to Rs.28,306 crore.
In addition, exposure of Banks to three more companies i.e. Diamonds RUS, Solar Exports and Stellar Diamonds, is yet to be disclosed by the Banks and Modi Government. Experts estimate this exposure to be in the range of Rs.3,000/Rs.5000 crore. This will further enhance the total figure of the Scam.
No wonder, ‘UDAAN’ is the buzzword of Modi Government, wherein every Scamster can ‘fleece and fly’ – ‘unchecked and undetected’.
2. Prior Knowledge of Modi Government, its Agencies and Governments of Maharashtra/Gujarat Exposed.
Modi Government i.e. Prime Minister’s Office, Enforcement Directorate, Ministry of Corporate Affairs, Serious Fraud Investigation Office (SFIO), SEBI as also two BJP’s State Governments i.e. Government of Maharashtra and Government of Gujarat were aware of the ongoing scam pursuant to a series of complaints filed as early as on 7th May, 2015. Details are as follows:-
(i) A complaint dated 7th May, 2015 was filed to Ministry of Corporate Affairs by one Shri Vaibhav Khuraniya & R.M. Green Solution Private Limited. Copy was also sent to Prime Minister’s Office, Enforcement Directorate, Serious Fraud Investigation Office. A copy of the complaint is attached as Annexure A-2. A copy of the courier receipt is attached as Annexure A-3. A copy of the reply dated 26th May, 2015 received from Prime Minister’s Office is attached as Annexure A-4.
(ii) A similar complaint was filed to Deputy Commissioner of Police, Mumbai. First page of the complaint containing receipt of DCP, Mumbai is attached as Annexure A-5.
(iii) Another person named Digvijaysinh Jadeja filed an FIR in Ahmedabad Economic Offences Wing, Gujarat against Mehul Choksi and others for defrauding him. The matter went to Gujarat High Court, where Government of Gujarat was a party, In Special Criminal Application No. 4758 of 2015, Digvijaysinh Jadeja filed an affidavit on 20th July, 2016 specifically pointing out that Mehul Choksi and others owed a debt of Rs.9,872 crore to Banks and are likely to escape from India. Copies of the pages 1, 2, 31 and 32 of the affidavit are attached as Annexure A-6.
(iv) A complaint dated 26th July, 2016 was filed by one Shri Hariprasad to Prime Minister’s Office, which has already been placed in public domain yesterday.
(v) On 3rd May, 2017; Shri Vaibhav Khuraniya also emailed the complaint Annexure A-2 to SEBI, which was duly registered. A copy of the online complaint registration receipt is attached as Annexure A-7.
Clearly, everyone in Government of India, including Prime Minister’s Office were aware of the fraud being committed.
3. Prime Minister knows Mehul Choksi? Modi Government denies it? Nirav Modi is in Business Delegation in Davos, Switzerland. Modi Government denies knowledge?
In a public event on ‘Gold Monetization Scheme’, Prime Minister Shri Narendra Modi publicly acknowledged Mehul Choksi as ‘हम र म ह ल भ ई’. Please see the attached video as Annexure A-8. Law Minister on 15th February, 2018 feigns ignorance.
Despite the entire fraud happening, Nirav Modi was in Business Delegation in World Economic Forum from 23rd to 26th January, 2018. PMO, PIB and MEA tweeted the picture of business delegation comprising of Nirav Modi and others with Prime Minister. Same are annexed as Annexure A-9. Law Minister and Government feign ignorance. Nirav Modi was also part of Business Delegation to Davos in the year 2016 too, when Finance Minister, Shri Arun Jaitley had represented India.
4. ‘The Great Escape’ as Agencies Look On
Nirav Modi leaves India on Ist January, 2018. His maternal uncle and co-accused, Mehul Choksi leaves India on 4th January. Nirav Modi’s wife, Ms Ami Nirav Modi and brother, Nishal Modi leave India on 6th January.
Nirav Modi conveniently attends World Economic Forum in Davos between 23rd -26th January, 2018 after escaping from India. CBI registers a case only on 31st January, 2018. CBI issues a Look Out Notice on 15th February, 2018. These dates themselves tell a story about ‘The Great Escape’.
5. Entire Audit and Fraud Detection Mechanism Failed. Deleberately?
Every bank goes through four kinds of audit i.e. Statutory Audit (Looks into bank’s balance sheet), Internal Audit (conducted by bank staff), Concurrent Audit (Audit of Bank transaction) and RBI Inspection. Despite this, the entire fraud escaped everybody’s attention. Obviously, someone was protecting this network of fraud.
6. Banks ignored ‘Red Flag’ by Rating Agency CARE in June, 2016
On June 07, 2016; rating agency – CARE withdrew the ratings assigned to the bank facilities of Firestar International Private Limited. Banks ignored it completely for unexplainable reasons.
Questions:
1. Why does the Modi Government not answer the five questions asked yesterday?
2. Has the size of bank loot scam peaked to Rs.21,306 crore? What is the total loss to Banks? Why is Government mum?
3. Did the Prime Minister, PMO, ED, Corporate Affairs Ministry, SFIO, SEBI and Governments of Maharashtra and Gujarat have prior knowledge of the Scam as early as on 7th May, 2015? Why did they not take action?
4. Does Prime Minister know accused-Mehul Choksi? If yes, why is Modi Government denying it? Did the PMO, PIB and MEA not tweet the picture of Business Delegation comprising of Nirav Modi with Prime Minister?
5. How did Modi Government and the agencies permit Nirav Modi/Mehul Choksi and others to escape from India?
6. How did the entire fraud escape the four stage audit system of Banks? Why did the banks not get alerted despite the withdrawal of ratings by rating agency CARE? 1. Firestar International
Working Capital (Rs. in Crores)
Name of Bank
Amount Fund Based Non Fund Based Punjab National Bank (Lead Bank) 848.00 180.00 Bank of Baroda 50.00 50.00 Andhra Bank 54.00 Nil Central Bank of India 169.00 25.00 Vijaya Bank 148.50 Nil Union Bank of India 100.80 9.20 Oriental Bank of Commerce 120.00 Nil Dena Bank 153.25 (40.00) Syndicate Bank 125.00 (31.25) Bank of India 90.00 Nil Axis Bank 45.00 Nil Indian Overseas Bank 45.60 Nil IDBI Bank 53.00 47.00 Bank of Maharashtra 70.00 25.00 Corporation Bank 70.00 16.00 UCO Bank 30.00 10.00 Allahabad Bank 30.00 70.00 Total 2202.15 352.20
Total Amount = 2202.15 + 352= Rs 2554.15 Crores
2. M/s.Firestar Diamond FZE: $ 12.00 mn (Rs.79.20 Crs) from Dubai BOB
3. Gitanjali Gems Ltd:
Banking arrangement (Working Capital) : (As per ICICI Bank assessment note for FY 2016-17)
(Rs. in Crores)
Sr No Name of the Bank Amount 1 PNB 587.00 2 Allahabad Bank 508.00 3 ICICI Bank 405.00 4 Corp Bank 297.00 5 Andhra Bank 292.00 6 Bank of Baroda 265.00 7 United Bank 252.00 8 CBI 242.00 9 Syndicate Bank 231.00 10 Canara Bank 195.00 11 IOB 176.00 12 BOI 173.00 13 SBH 140.00 14 Dena Bank 121.00 15 J&K Bank 121.00 16 OBC 121.00 17 Standard Chartered 121.00 18 Union Bank 121.00 19 Exim Bank 109.00 20 IDBI Bank 99.00 21 Kntka Bank 87.00 22 SBBJ 87.00 23 SBM 79.00 24 SBI 67.00 25 Vijaya Bank 63.00 26 Catholic Bank 61.00 27 IndusInd 58.00 28 Punjab & Sind 35.00 29 Karur Vysya 30.00 30 Laxmi Vilas 30.00 31 BOM 24.00 Total 5198.00
4. Gitanjali Gems Ltd:
Banking Arrangement (Term Loans):
(Rs. in Crores)
Bank / Institution 31.03.2016 ECB from ICICI / IDBI / BOB 410.04 Non Convertible Debentures with LIC 32.56
5. Gitanjali Export Corporation:
Banking Arrangement (Working Capital)
(Rs. in crores)
S. No. Name of Bank Amount Additional Amount availed as on 30th June 2017 1 Allahabad Bank 103.58 46.50 2 Bank of Baroda 102.89 51.21 3 Bank of Maharashtra 69.06 30.94 4 Canara Bank 36.74 16.46 5 Central Bank of India 82.87 37.13 6 Corporation Bank 93.92 42.08 7 Dhanalaxmi Bank 69.06 30.94 8 ICICI Bank 41.43 40.57 9 IndusInd bank 48.00 22.00 10 Punjab & Sindh Bank 27.62 12.38 11 JSC VT Bank 20.72 9.28 12 State Bank of India 151.92 68.08 13 UCO Bank 96.68 43.32 14 United Bank of India 124.85 111.95 Total 1069.34 562.84
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https://twitter.com/pmoindia/status/955818409291276293
https://twitter.com/pib_india/status/955783679921471490