The Rs 11,400-core PNB scam caused by diamond jewellery designer
Nirav Modi has made Narendra Modi Government more vulnerable
By HARVINDER AHUJA
Another Modi (or ‘Chhota Modi’, as Congress loves to call him) is making national headlines these days. Celebrity jeweler Nirad Modihas fled the country after having allegedly defrauded the Punjab National Bank of Rs 11,400 crore. The largest banking scam in the country’s history, besides shaking the banking scam, has severely busted the scam-free claims of the Narendra Modi Government.
As is its wont, the Government has shoved the blame on its predecessor UPA’s rule saying it all began in 2011,forgetting conveniently that it has been in power for almost four years now and most of the fraudulent transactions, according to the CBI, took place during 2017 and 2018. Worse still, it has failed to answer as to why no action was initiated even after a whistle-blower had approached the top authorities, including the PMO over a year ago.
What is even more bizarre is that it pushed forward the Defence Minister of the country to answer allegations in the case she knows nothing about. Finance Minister Arun Jaitley, in whose domain banking and finance fall, has nothing to say on this matter so far and he has mysteriously gone into hiding. Prime Minister Modi, who always has plenty to say on topics ranging from children’s school exams to peace formula in Palestine, is also keeping his mouth shut. Of course, it is in keeping with his characteristic of keeping mum whenever unpalatable happenings like communal incidents or vigilante justice take place in the country.
Even the counter-allegations leveled by Nirmala Sitharaman, who came out in defence of the Government leaving aside her primary duty as the Defence Minister of the country, were ludicrous, to say the least. In an attempt to dump the blame at Congress door, the minister accused the Congress Party spokesperson Abhishek Manu Sanghvi and his family members of having had business links with the companies associated with Nirav Modi, the kingpin of the scam.
As a proof of the charge, the Government spokesperson informed the media that one of Nirav Modi’s firms was based out of a property owned by Sanghvi family. Also it was claimed that Singhvi’ wife had bought jewellery worth Rs 1 crore from one of Nirav Modi’s showrooms. Big deal!!! And how do these establish a business ‘link’? It virtually amounted to saying that since you flew Kingfisher Airlines once or you drank Kingfisher beer the other day, you have links with Vijay Mallya! Certainly, one expected BJP spin-masters to be more ingenious.
The fact of the matter is a major financial scam has happened eroding further the credibility of the present Government. Surrounded already with charges of un-kept promises, mishandling of the economy and vitiating communal harmony in the country, the Modi Government will find it extremely tough to surmount the latest challenge. As the recent by-elections results in Rajasthan have proved, the Government stock is gradually falling and 2019 may be no cakewalk for it. The Nirav Modi episode will only make it more difficult for Modi to flaunt his no-corruption bravado before the electorate. It may turn out to be Modi Government’s 2G-moment, as a TV news anchor aptly labelled it.
No doubt, the Congress Party also can’t absolve itself of responsibility as the scam began when it was in power. However, the fact that it carried on, rather intensified, during the BJP’s four years in power is bad news for Modi. The Congress has already been punished by the people and is reduced to a paltry 44 in the Lok Sabha. It only needs to re-establish itself in people’s perception and go beyond its current strength. Thing will be tougher for the BJP whose one-man army in the form of Narendra Modi showed the vision of a ‘New India’ to the people with promises of a corruption-free Government. In that sense, Nirav Modi has posed a fresh challenge before the ‘bigger’ Modi.
Besides, the scam has exposed the vulnerability of the banking security system in our country and caused panic among public. PSU banks are supposed to be having internal auditors, vigilance officials, there are agencies like the CVC, the CAG and then there is the banking regulator RBI. The fact that a scam of this magnitude could take place in the second largest bank of the country despite the existence of all these bodies is mind-boggling. Only a moron would be willing to believe that a few junior or middle-level employees could be bribed to issues LoUs of such massive amount to Nirav Modi’s firms without the connivance of top management.
As the Nirav Modi scam has raised serious questions over the sanctity of our banking system, the Government must ensure that the PNB is immediately made to pay to all the international banks to safeguard its credibility. It should also ensure the international banking community that all LoUs issued by all the banks in the country will be honoured. And lastly, it should waste no time in dismissing the Board of Management of the Punjab National Bank for its colossal incompetence.
(The author is Delhi based Consulting Editor of Kashmir Age and can be reached at: harrysnigi@gmail.com)
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