PM promoted pvt diamond firms against PSUs: Anand Sharma

The Congress today accused Prime Minister Narendra Modi of "promoting" private firms which inked diamond purchase pacts with Russia in 2015 after "cutting out" public-sector units MMTC and Hindustan Diamonds.

Senior Congress leader Anand Sharma asked the prime minister to explain to the country "why he sidelined government-run entities and promoted private firms, some of which are facing investigation of defrauding banks".

He accused the prime minister and the finance minister of not being forthcoming and honest in their response on the issue of bank fraud by Nirav Modi and Mehul Choksi.

Noting that the situation in banking sector is "very fragile", he asked the government to come out with a white paper on their state.

He said both wilful defaulters and entities which have committed bank frauds have raised the risk for the Indian banking system, which in any case "needs urgent recapitalisation but the government does not have adequate funds".

Sharma said that in December 2015, when Russian President Vladimir Putin came to India, "he (Modi) was personally present and helped in facilitating the signing of Diamond purchase agreements between 12 diamond companies, mainly from Gujarat and Mumbai, and Al Roza of Russia".

These companies also included Rosy Blue Group, which is being prosecuted for defrauding banks, he told

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