No one will be spared: Ravi Shankar Prasad on Nirav Modi

"I wish to make it very clear and this I can also convey on the behalf of the govt that no shall be spared in the banking system who has sought to derail ordinary banking system to help Nirav Modi," Prasad told media.

He said allegations made by the Congress over the issue were 'baseless'.

"Using term like Chota Modi is not acceptable," he said.

He said Nirav Modi was not part of Prime Minister Narendra Modi's delegation that visited World Economic Forum in Davos.

"He had no interaction with the PM," Prasad said.

Congress President Rahul Gandhi, West Bengal Chief Minister Mamata Banerjee and other opposition leaders targeted Prime Minister Narendra Modi and his government over the alleged  Punjab National Bank (PNB) scam on Thursday.

Attacking the PM, Congress supremo Rahul Gandhi said diamond merchant Nirvav Modi's Rs 11,500 crore fraud in the country's second-biggest state-run bank was a guide to "looting India".

He said the 'guide' involved 'hugging' Narendra Modi and then escaping the country.

"Guide to Looting India by Nirav MODI 1. Hug PM Modi 2. Be seen with him in DAVOS Use that clout to: A. Steal 12,000Cr B. Slip out of the country like Mallya, while the Govt looks the other way. #From1MODI2another," Gandhi tweeted attacking Narendra Modi and his government over the alleged scam.

He tweeted after Congress leader Gaurav Gogoi shared an image on social media where the PM could be seen  with Indian CEOs at the World Economic Forum in Davos in January.

Nirav Modi could be seen in the group photo which also features PM Modi.

"What criteria does the Prime Minister use to select the CEOs accompanying him on foreign trips? #NiravModi #PNBScam," Gogoi tweeted.

Meanwhile, West Bengal Chief Minister Mamata Banerjee said people's savings were no more safe and demanded for a thorough, time bound enquiry into the alleged scam. 

"Look what happened at Punjab National Bank ? A scam of more than Rs 11,000 crore. People's savings are not safe. There must be a thorough, time bound enquiry," Banerjee tweeted.

Randeep S Surjewala, Communications in Charge of All India Congress Committe tweeted, "Who is Nirav Modi? The new #ModiScam? Was he tipped off like Lalit Modi & Vijay Mallya to escape by someone within the Govt? Has it become the norm for letting people run away with public money? Who is responsible?"

The Enforcement Directorate (ED) raided the home, offices and showrooms of Nirav Modi, the globally acclaimed diamond jeweler, with regard to the alleged Punjab National Bank (PNB) scam, according to media reports on Thursday.

The raids were conducted across Delhi and Mumbai, media reported.

Reportedly, ED has filed Rs 11,300 crore case against Nirav Modi.

On Wednesday, India's second largest government bank, PNB said that $1.8 billion or over Rs. 11,000 crore of taxpayers' money had been illegally transferred abroad to select customers from a single branch in Mumbai, reported NDTV.

The news channel also reported that Nirav Modi, 48, is already being investigated by the CBI in connection with fraud worth Rs. 280 crore. The diamond merchant was raided by Income Tax officials on January 31; his offices in Delhi, Surat and Jaipur were searched.

According to some media reports on Thursday, Nirav Modi has written to banks saying that he will repay the loans.

Reports say that he is ready to pay Rs 5,000 crore, reported CNN-News18.

The news channel also quoted ED as saying that Nirav Modi is in Switzerland now.