Nirav Modi fraud case: Original sin committed in UPA tenure, says Sitharaman

The Bharatiya Janata Party on Saturday alleged that the multi-crore Punjab National Bank scam involving billionaire jewellery designer Nirav Modi happened during the United Progressive Alliance rule and the Congress was spreading lies to mislead the public.

The BJP, which fielded Defence Minister Nirmala Sitharaman to counter the Congress's charges, claimed that it was under the National Democratic government that the alleged scams committed during the UPA rule were being unearthed.

The Congress has alleged that the scam took place in 2017 under the Modi government when letters of understanding were signed by Punjab National Bank in favour of the companies of Nirav Modi and his partner and uncle Mehul Choksi.

Sitharaman said Nirav Modi may have been able to run away from the country, but the government is taking action against him, and claimed that it will "surely nab him".

"The original sin took place during the Congress regime. It multiplied, it took traction under the Congress regime," she told reporters.

"We are not conspiring to help scamsters flee the country, but the BJP government is catching them instead," she said.

Accusing the Congress of spreading lies on the issue, the minister said, "As always, the Congress party indulges in such scandalous affairs, misuses positions in government, tweaks system to help themselves and quietly cover up everything that they do."

Sitharaman said the Narendra Modi government came to power with a clear commitment of unearthing scams and corrupt practices.

Instead of explaining as to why the scam happened during the UPA rule, the Congress instead is making allegations against the BJP.

"I am sorry, the Congress party's allegations against this government and in misleading people is just not going to happen.

"Concerted repeating of lies for misleading people may be a strategy the Congress likes to adopt. But I am sorry the facts are facing you and it is for them to answer," she said.

To a question on the offenders fleeing the country during the NDA regime, Sitharaman said, "They have fled but this doesn't mean we will not catch him. But they are facing the heat. Investigation is happening."

"They are probably running away but I am not saying that we are sparing them. We will surely nab them. We are the ones to nab them," she said.

She alleged that the person who was approving the LoUs was quietly allowed to retire and the BJP which is taking action is being accused instead.

"We have taken action. We have sent notices, confiscated their properties and the process is still on, but allegation is on us. Shocking that the Congress party (is doing this) despite being reduced to 44 in Lok Sabha," she said.

Sitharaman also alleged that it was Congress leader Rahul Gandhi who attended a promotional event hosted by Nirav Modi.

She also claimed that the Nirav Modi-run Fire Star Diamond International has taken on lease a property of Adwait Holdings in which Congress leader Abhishek Singhvi's wife is a director.

"What is important that the premises has been used by Fire Star Diamond International," she alleged.

Sitharaman also claimed that a government director of Allahabad Bank, who in 2013 had raised objections to the financial restructuring of Gitanjali Gems, was asked to resign and his dissent was not even recorded.

Central probe agencies, the CBI and the ED, on Friday continued their crackdown in the Rs 11,400-crore bank fraud case involving Nirav Modi and family, registering a fresh case against Choksi.

The CBI has alleged that the new FIR pertains to 143 LOUs worth over Rs 4,886 crore fraudulently issued to three companies of Choksi -- Gitanjali Gems, Nakshatra and Gili -- during the period 2017-18, officials said.

The agency had earlier registered a separate case involving Rs 280-crore fraud, which has now been expanded to cover LoUs worth Rs 6,498 crore issued to accused companies of Nirav Modi and Choksi.

An LoU is a letter of comfort issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.

Abhishek Singhvi threatens to sue Sitharaman over Nirav Modi charge

Congress leader Abhishek Singhvi denied any links of his family with jewellery designer Nirav Modi and Gitanjali Group promoter Mehul Choksi and charged the BJP with playing "cheap politics".

"BJP/NDA's cheap sense of politics has reached ludicrous and ridiculous proportions. Neither my wife, sons nor me have anything whatsoever to do with Gitanjali or Nirav Modi companies," he said in a statement.

Singhvi said Nirav Modi's company was a tenant of a Kamla Mills property owned by Adwait Holdings in which his wife and sons are directors.

"What is important that the premises has been used by Firestar Diamond International," she alleged.

Singhvi said Adwait Holdings owns a commercial property at Parel, which was rented by Nirav Modi's company many years ago.

"Neither Adwait nor my family has any interest with Modi or the company. Last August, the company gave notice to quit tenancy and vacated Parel Kamla Mills premises in December 2017," he said.

"Neither I nor any member of my family has any interest in or relation to Nirav Modi or his companies. His company was a tenant in some commercial property owned by our family company. This tenancy ended in December 2017.

"None of us have anything to do even remotely with Gitanjali company, Firestar or any other business of Nirav modi.

"Sensationalism, ignorance and falsehood has exceeded all limits in this irresponsible charge," he said, threatening Sitharaman and her colleagues of civil and criminal defamation for making "ill-considered, ignorant and patently false allegations".

"I reserve my rights to take all such appropriate legal action against the latter and all parts of the media which carry such false and maliciously defamatory allegations," Singhvi said in a statement.