Why are all banking frauds in jewelry sector and involving Gujaratis, Chidambaram wonders

Last Updated: Mon, Mar 12, 2018 11:14 hrs
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Bengaluru: Former Finance Minister P Chidambaram alleged that the accused in the two-billion-dollar PNB scam were "helped at some level."

The senior Congress Party leader, while speaking at the launch of his book titled Speaking Truth to Power, wondered why all scams were only taking place in the jewelry sector, with key players mainly from Gujarat.

"It's all happening in one sector - jewelry. Key players seem to have come from one state - Gujarat. It's not happening across other sectors and states. Obviously, people have been helped at some level. Who helped and how, I have no evidence," he said.

PNB in February had detected a 1.77-billion dollar fraud involving noted jewelry designer Nirav Modi and his uncle Mehul Choksi, the owner of Gitanjali Gems Pvt Ltd, who had both acquired multiple letters of undertaking to avail credit from a number of banks. Before this had come the Rs 7000-crore scam involving Jatin Mehta of Winsome Diamonds.

On Thursday, the Central Bureau of Investigation (CBI) registered a fresh case against two firms of Nirav Modi.

Modi, who owns Firestar Diamond International Private Limited, and Choksi have been accused of defrauding PNB of Rs 12600 crore, with Rs 1300 crore being added to the fraud kitty on February 26.



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