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PMO And Finance Ministry Knew That The Country Was Being Looted: Kapil Sibal

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| February 17 , 2018 , 14:37 IST

Congress leader Kapil Sibal on Saturday lashed out at the Modi Government for institutionalizing Crony capitalism.

Speaking at an AICC Press Conference Sibal said, “The market capitalisation of listed companies in the Gems and Jewellery business is 41.66 billion rupees while the gross current debt is 94 billion rupees. This means that the debt is twice the market capitalisation and that is a scam in itself. Who can say that the Government did not know this?”

Sibal stated that the credit norm for the precious stones, gems and jewellery industry is that you do not credit for more than 90 days but most of these credits were issued for a year with the knowhow of Banks, branches, RBI and Finance Ministry.

Quoting the FIR filed by the CBI, Sibal said that all the LOUs in question were from 2017, which were due to be paid in 2018.

Addressing journalists, Sibal said “I want to ask, why did the Finance Minister inform you about this? The HRD Minister and Social Justice Minister have come out in front of you and leveled some allegations. What does a HRD Minister have to do with this? Is the Minister very admiring of the quality of the human resource of Nirav Modi? What has the Social Justice Ministry to do with this?”

“What has the Law Ministry to do with this scam? Neither the Finance Ministry will come forward, nor any officials of the ministry or RBI will come forward,” he added.

What is a LOU?

A Letter of Undertaking (LOU) is a confirmation issued by a local bank on behalf of its customer to another bank outside of India for the purpose of conducting an international transaction. A LOU means that if the customer fails to pay for the goods then the LOU issuing Bank shall pay on its behalf.

Quoting a complaint filed by one Vaibhav Khurania who wrote to the PMO, Serious Frauds Investigation Office, Corporate Affairs Ministry, SEBI and governments of Gujarat and Maharashtra, on May 7, 2015, warning against Choksi’s plans to flee with public money, Sibal questioned how the PMO dealt with his complaint.

“We are making a direct allegation against the PMO and the Finance Ministry. They were aware that our country was being looted, they are aware that our country is being looted, but they turned a blind eye.” he added.

Also Read:Congress: If PMO Was In The Know Of The PNB Scam Why Did They Allow Nirav Modi To Escape?

Sibal questioned the manner in which the line of credit was given to the scamsters and the way their line of credit was increased without collateral.

He asked the Government to tell the exposure that the banks have with this industry given the fact that the debt surpasses the gross income.