DECCAN INQUIRER
Weekly e news paper
Editor: Nagaraja.M.R.. Vol.02.....Issue.33…...........18/08/2021
Editorial : NPAs & Cunning mafia of Bank Officials , Judges !
- An Appeal to Honourable Supreme Court of India
On one hand In India crores of people are barely sustaining on a single piece meal a day. Hunger deaths are frequent.
On the other hand The money in banks belongs to depositors, public , Government ( again public money ). Bank money is not bank manager's papa's money.
Bank officials connive with cunning entrepreneurs, industrialists and swindle bank of public money. With Ill gotten money bank officials & industriialists are leading luxurious lifestyle.
RBI which is mandated to supervise banks and check such criminal acts also becomes part of mafia.
This is the very reason banks and RBI is afraid of RTI , as it will throw light on their crimes. Bank mafia is so arrogant as to defy Supreme Court order. Since years our publication has brought bank crimes to the notice of RBI & SCI requesting for information & justice. Till date no information nor justice. Robberies of banks going on unabated inspite of appeals to SCI raising doubts about involvement of Supreme Court Judges in the bank crimes.
Hereby we request SCI to order RBI to answer our previous RTI queries, also request SCI to register our previous PILs and deliver justice. our publication again offers conditional services to SCI in apprehending these Corporate Thugs and Bank Thugs. Are you willing ?
God save my India
Your's
Nagaraja Mysuru Raghupathi
India Inc. vs. RBI: Companies don’t want to reveal loan details to public
Credit-rating agencies have been mandated to list bank-wise term-loan data availed by borrowers. Companies and banks say it’s a breach of client confidentiality.
Starting August, the Reserve Bank of India (RBI) made it mandatory for credit-rating agencies (CRAs) to disclose bank-wise term-loan details of clients or the borrowers for whom ratings were reaffirmed or freshly given.
This mandate was given to the CRAs early this year with the objective to increase disclosures in rating reports. CRAs began implementing this order from the central bank, but sources in the know say India Inc. is resisting such disclosures. “Many companies have expressed their discomfort in divulging bank-wise details of loan exposure and don’t want it to be part of the rating rationale,” says the CEO of a leading CRA.
India Inc. on its part has also approached the central bank to reconsider its stand on such disclosures. Some large conglomerates have written to the RBI asking it to withdraw this requirement. “Information shared with banks and CRAs is highly confidential and is governed by client privilege. Why should such important information be made public?” asks the CFO of a leading cement company.
To put things in context, there are three segments which make up rating documents. Rating rationale captures the score ascribed to the instrument or loan exposure under review and also explains how the score or rating was arrived at. As part of improving transparency, CRAs are required to disclose bank-wise outstanding of the borrower and this is required for fund and non-fund-based exposures as an annexure to the rating rationale.
Whenever there is an increase in credit facility and/or change in composition of term loans, it has to be updated in the annexure. Among the other two documents – rating perspective and rating letter, the former is a paid service which has elaborate details of the client. The rating letter is a confidential communication between the borrower (client) and the CRA and is shared with bankers of the client. This enumerates lender-wise and facility-wise exposure of the borrower.
“For new rating engagements, we have started following this method of reporting. However, in case of legacy clients, some are not comfortable adopting this format of disclosure,” says a senior rating officer of a CRA. On whether such clients should be classified as non-cooperative or not, CRAs say they would first intimate the RBI about such clients. “Technically they are not non-cooperative. They are only resisting certain disclosures being made public,” he adds. “It’s now for RBI to take a call on the matter” says the CFO quoted earlier.
According to highly placed sources, this time around it is unlikely that the RBI would budge on requests from India Inc. Bank-wise public disclosure of loan details in the credit-rating documents was something which was in the works for several years and it has now been implemented. “If the objective is to disseminate as much information as possible, why should the RBI roll back this requirement?” asks the person quoted earlier.
PIL - Corporate Crimes & Corporate Thugs
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2021
IN THE MATTER OF
NAGARAJA . M.R
editor DECCAN INQUIRER
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Cabinet Secretary ,Ministry of Corporate Affairs , Government of India & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
a. "Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
b. There are many companies in india , promoters of which are indulging in illegal practices in their greed to make money. They are swindling lending banks & share holders by posting wrong picture about their project worth , product costing, etc. They siphon off money too to their sister companies by insider trading , by buying machineries & material at higher than market price from sister companies , by selling products to their sister companies at lower value , by lending loans , guarantees to their sister companies , etc. some of our greedy auditors & company secretaries are teaching these criminal industrialists how to tweak laws , how to escape through legal loop holes unscathed. These type of Industrialists are nothing but Rogues , Third class people with third class culture but in First class attire.
c. Add to this corporate corruption , the high ranking executives indulge in corrupt practices during purchase , sales functions draining the company resources.
d. The managers of lending banks , executives of SEBI , officers of MCA have a say in the running of the culprit companies. But they keep mum , for a price ?
e. Most part of that swindled money , black money is destabilizing our economy , causing inflation , funding underworld & Terrorist outfits.
2. Question(s) of Law:
What is the guarantee for public money invested or lent to such fraudulent companies ? How to recover the public money ?
3. Grounds:
Requests for equitable justice , Accountability for public money worth crores of rupees.
4. Averment:
Private companies in their greed for money are violating norms in league with public officials. They have caused loss to the public exchequer and to the public. Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions in the case of Reliance , RPG , Nestle and others.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
(i) Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
(ii) to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
(iii) To bring all private companies who have either borrowed loans from public , bank , FIs , government or collected share capital from public , FIs , government or received subsidy , seed capital from public , public institution under purview of RTI Act of Government of India.
(iv) To annually make public , combined list of all Non Performing Assets of banks , FIs , NBFCs , Government with names of defaulting promoters.
(v) To annually make public wealth details of Bank Managers , FI managers.
(vi) To make it mandatory for each company , to take approval of share holders , banks before making any donations either to political parties , religious bodies , etc.
(vii) When a company goes bust due to siphoning off money by promoters , in such cases the sister companies or companies in criminal nexus who have benefitted from the swindled money must also be seized , personal properties of promoters of the culprit company / sister companies and the properties in the names of their family members must also be seized , auctioned off to recover public money.
(viii) The financial transaction or material transaction like purchase / sale of material between an Indian company and a company abroad , must be endorsed by share holders , lending banks.
(ix) To annually make public wealth details of all state government & central government Tax officials , who are aiding the Criminal Industrialists in their crimes.
(x) We at DECCAN INQUIRER offer our conditional services to the SCI , to apprehend criminals , guilty industrialists. Are you ready to utilize it ?
(xi) Whistle blowers who alert about corporate crimes must be protected & rewarded.
(xii) The channeling of money from these corporate to Underworld & Terrorist outfits must be stopped.
(xiii) All NGOs , Political Parties , Religious Bodies must annually make public the details of donations received from public & corporates.
(xiv) To make Corporate Social Responsibility mandatory for all corporate making profit .
(xv) To annually make public CSR details of Corporates and punish those showing inflated figures.
(xvi) As a final step banning all corporates from making donations to NGOs , Political Parties , Religious bodies and make it mandatory for them to invest in CSR initiatives.
(xvii) In cases of corporate crimes , liability should cover promoters , directors , decision making executives of the company individually.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Kindly read full details at following web page :
Fraud in Banking Sector
http://www.bis.org/review/r130730a.pdf ,
http://media1.intoday.in/businesstoday/images/fraud-survey-ErnstYoung.pdf ,
PIL- Reliance Scams
https://sites.google.com/site/sosevoiceforjustice/pil---reliance-scams
PIL – Killer Colas , Noodles , Medicines
https://sites.google.com/site/sosevoiceforjustice/pil---killer-noodles-colas-medicines
RBI – Robber’s Bureau of India
https://sites.google.com/site/sosevoiceforjustice/rbi---robberer-s-bureau-of-india
DOW – Pay up
https://sites.google.com/site/sosevoiceforjustice/dow---pay-up
Corporate Terrorists of India
https://sites.google.com/site/sosevoiceforjustice/corporate-terrorists-of-india-1
Vostro Account Scam
https://sites.google.com/site/eclarionofdalit/vostro-account-scam-crimes-of-r
CORPORATE CRIMES RPG CABLES LIMITED
http://crimesatrpg.blogspot.com/ ,
http://crimesatrpg.wordpress.com/ ,
Dated : 11.08.2021…………………………… FILED BY: NAGARAJA.M.R.
Place : Mysuru , India…………………………PETITIONER-IN-PERSON
RBI Accountable under RTI
Rules Supreme Court of India
Recently the Supreme Court dismissed multiple pleas filed by several private and public sector banks asking it to ‘recall’ its judgment pronounced in 2015 wherein the Reserve Bank of India (RBI) was directed to release in the public domain its annual inspection reports and loan defaulters list under the Right to Information Act, 2005 (RTI Act). The Supreme Court, in its 2015 judgment, had held that the RBI was duty-bound to uphold the interest of the public at large, the depositors, the country’s economy and the banking sector.
The petition, filed by several banks, seeking the recall of its 2015 judgment, was heard by a Supreme Court division bench of Justices L Nageswara Rao and Vineet Saran. The banks argued that the apex court’s 2015 judgment had not considered important legal and constitutional provisions. They said that the order was violative of the right to privacy, which has been held to be an inseparable part of the fundamental right to life and personal liberty under Article 21 of the Constitution of India as per its Justice K.S. Puttaswamy judgment.
The division bench noted that the plea, styled as ‘recall’ applications, were in essence ‘review’ petitions.
“A close scrutiny of the applications for recall makes it clear that in substance, the applicants are seeking a review of the judgment in Jayantilal N.Mistry (supra). Therefore, we are of the considered opinion that these applications are not maintainable. We make it clear that we are not dealing with any of the submissions made on the correctness of the judgment of this Court in Jayantilal N Mistry,” the court observed.
The court further opined that the RBI must act with transparency and not hide information that might embarrass banks and that it is duty-bound to comply with the provisions of the RTI Act and disclose the information. While examining its previous judgment, the court also held that there was no provision in the Supreme Court Rules for a recall of the judgment.
The court added that parties should not be allowed to file applications to reopen concluded judgments of the court.
Background of the case
The Supreme Court judgment of 2015 relates to the denial of information under the RTI Act by the RBI.
One of the main respondents in the case before the Supreme Court in which it gave the judgment in question in 2015, is an RTI activist named Jayantilal Mistry, who sought information from the RBI about a Gujarat-based cooperative bank. The information pertained to the release of its annual inspection reports.
The RTI application was filed in October 2010 before the RBI’s designated Central Public Information Officer (CPIO). The RBI, however, did not provide the requested details.
Mistry then filed an appeal before the designated First Appellate Authority (FAA) of the RBI. On March 30th, 2011, the FAA disposed of the appeal by upholding the order of the CPIO.
Mistry ultimately took the matter before the Central Information Commission (CIC). The CIC, in its judgment dated 1st November 2011, directed the RBI to provide information before 30th November 2011.
Aggrieved by the decision of the CIC, the RBI filed a writ petition before the Delhi High Court to request quashing of the CIC’s judgment. The High Court, while issuing notice, stayed the operation of CIC’s order. The matter was finally challenged before the Supreme Court of India.
Information sought under RTI
There were multiple RTI applications filed before the RBI seeking inspection reports of various public and private sector banks, alongside a list of bank loan defaulters.
Between May and June of 2010, a statutory inspection of the Makarpura Industrial Estate Cooperative Bank Ltd in Gujarat had been conducted by the RBI under the Banking Regulation Act, 1949. Subsequently, in October 2010, Mistry had sought the information on the following points from the RBI via an RTI application:
1. Procedure, rules and regulations of inspection being carried out on cooperative banks.
2. Last RBI investigation and audit report carried out by Shri Santosh Kumar from 23rd April 2010 to 6th May 2010 sent to the Registrar of the Cooperative of the Gujarat state.
3. Last 20 years inspection report carried out in Makarpura Industrial Estate Cooperative Bank Ltd along with names of inspectors and action taken report.
4. Reports on all cooperative banks gone on liquidation plus action taken against all Managers and Directors for recovery of public funds and powers utilized by RBI and analysis and procedure adopted.
5. Names of remaining cooperative banks under your observation for irregularities and action taken reports.
6. Specify the time period required to take action and implementation.
To the first question, the CPIO said that RBI was conducting the inspection under section 35 of the Banking Regulation Act, 1949 at regular intervals. The second question was not answered, with the CPIO invoking section 8(1)(a) and (e) of the RTI Act to claim that that information was held by the RBI under fiduciary relationship, and thus could not be revealed under the transparency law.
For the third and fourth questions, the same exemption clause was invoked by the CPIO, and to the final two questions, the CPIO simply responded with “no specific information has been sought.”
Struggle to seek information from J&K Bank
Banks have always tried their best to deny information to people under the RTI Act. Even public sector banks, or those controlled or owned by the Government, have claimed that they were not public authorities.
This author has fought a long battle with the Jammu & Kashmir (J&K) Bank as the management of the bank has long argued that the RTI Act does not apply to it. The full bench of the erstwhile J&K State Information Commission (SIC), in a detailed judgment, had declared the J&K Bank as a public authority in 2012.
However, the J&K Bank, like the RBI, stayed the operation of the SIC’s order. The matter was taken up before the J&K High Court, which, for almost six years, did not decide the case. Finally, the J&K administration decided to expressly bring this bank under the ambit of the RTI Act.
Pertinently, the J&K government is a majority shareholder in the bank, with a 59.3 percent stake. In 2018, when the J&K Bank sold its two non-performing assets (NPAs) of a few top business houses to an asset reconstruction company (ARC) at a 40 % discount, which worked out to Rs. 720 crores, I wrote a piece on the issue in a local English daily in January 2019, in which I demanded a probe into the matter.
A few days after the publication of the article, I was issued a show-cause notice by the legal wing of the J&K Bank asking me to apologize for bringing “disrepute” to the bank. When I refused to apologize and wrote a counter-response to the bank, a defamation suit for Rs. 50 crores were filed against me by the J&K Bank in a Srinagar court.
The court ordered that I should not write anything defamatory against the bank, which I never did!
During the hearing of the case, when the impugned article was placed before the Additional District and Sessions Judge, Srinagar, he made an open comment in the court that, raising issues related to transparency and accountability can’t be related to defamation. The counsel of J&K Bank could not utter a word in response.
When the defamation case was filed against me, the bank had already been brought under the RTI Act’s ambit by the-then State Administrative Council (SAC) headed by former Governor Satyapal Malik in November 2018. My claim about corruption and mismanagement in the J&K Bank was authenticated in June 2019, when the J&K Anti-Corruption Bureau (ACB) raided the bank’s corporate office. The Chairman of the bank was sacked by the J&K government a day before the raid, and very recently, he was arrested by the ACB in a separate matter.
J&K Bank continues to deny information
Even after all this, the J&K Bank continues to deny information under the RTI Act.
Some months back, a citizen named Mohammad Ramzan from Srinagar sought details of funds spent on advertisements by the J&K Bank. Through an RTI application, he asked for a list of beneficiaries like media houses, private channels, FM radio stations, newspapers, online news portals, and other media platforms, that were provided these advertisements against payment of huge money.
In his reply, the PIO of the J&K Bank corporate office said that the list of such beneficiaries could not be provided. He invoked various sub-sections of section 8 of the RTI Act.
Technically, the J&K Bank is supposed to make such a beneficiary list public through its website as mandated under section 4(1)(b) of the RTI Act. This clearly indicates that the bank is not ready to ensure transparency and openness, in spite of the fact that several cases against it are already pending before various anti-corruption agencies.
Ramzan filed an appeal before the FAA of the J&K Bank corporate office. The appeal has not been adjudicated till date.
“I am now planning to file a second appeal before the CIC as J&K Bank seems to have no plans to provide me the information,” Ramzan told The Leaflet.
Why banks must be transparent under RTI Act
Section 2(f) of the RTI Act defines the term ‘information’ under the RTI Act thus:
“Information means any material in any form, including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force”
The Supreme Court, in its 2015 judgment against RBI, has also made a detailed reference to section 2(f) of the RTI Act.
The RBI collects inspection reports from various banks. Since these reports fall within the definition of ‘information’, the same must be provided to citizens. Ideally, the RBI should make these reports public through its website.
By dismissing the recall application, the apex court, in its supreme wisdom, has made it clear that citizens have every right to make banking institutions accountable, especially at a time when big loan defaulters lists and inspection reports are always kept confidential by banks.
PIL – Stop Robberies @ RBI by bank staff
IN THE SUPREME COURT OF INDIA ORIGINAL JURISDICTION
CRIMINAL WRIT PETITION NO. OF 2021
IN THE MATTER OF
NAGARAJA . M.R
editor DECCAN INQUIRER
# LIG 2 , No 761 ,, HUDCO First Stage , Laxmikantanagar ,
Hebbal , Mysore – 570017 , Karnataka State
.
....Petitioner
Versus
Honourable Governor , Reserve Bank of India (RBI) & Others
....Respondents
PETITION UNDER ARTICLE 12 to ARTICLE 35 & ARTICLE 51A OF THE CONSTITUTION OF INDIA FOR ISSUANCE OF A WRIT IN THE NATURE OF MANDAMUS UNDER ARTICLE 32 & ARTICLE 226 OF THE CONSTITUTION OF INDIA.
To ,
Hon'ble The Chief Justice of India and His Lordship's Companion
Justices of the Supreme Court of India. The Humble petition of the
Petitioner above named.
MOST RESPECTFULLY SHOWETH :
1. Facts of the case:
"Power will go to the hands of rascals, , rogues and freebooters. All Indian leaders will be of low calibre and men of straw. They will have sweet tongues and silly hearts. They will fight among themselves for
power and will be lost in political squabbles . A day would come when even air & water will be taxed." Sir Winston made this statement in the House of Commons just before the independence of India & Pakistan. Sadly , the forewarning of Late Winston Churchill has been proved right by some of our criminal , corrupt public servants.
2. Eventhough , I have repeatedly appealed to RBI authorities since years seeking justice regarding illegalities , irregularities in recruitment , currency handling , currency theft , etc @ RBI , they didn’t provide justice at all.
3. For a common man it is a herculean task to get Rs.5000 loan from a bank , but rich & connected get lakhs , crores of rupees loan quite easily from banks , how ?
4. When a common man , farmer defaults to pay loan of few thousands of rupees bank immediately dispatches loan recovery agents / Rowdies , seizes his property & auctions and recover their dues to last penny. Farmers are committing suicide unable to pay loans to escape from ignominy .
5. Huge companies get crores of rupees loan from banks eventhough basically the project report itself is at fault , not viable. Siphons off company resources by insider trading to their sister concerns although bank representatives are very much their on the board of companies.
6 . Such companies default on loan dues to bank , but no recovery agents / rowdies are sent by banks. Finally the company becomes bust.
7. Bank looses money , the company is declared as NON PERFORMING ASSET and government + bank waives off interest or else loan itself.
8. End looser the public whose money went down the drain , profiteers – company promoters , executives and bank manager. No recovery from their personal , family properties why ?
2. Question(s) of Law:
Is it right for banks , government to let out fraudsters without criminal prosecution ?
3. Grounds:
Requests for equitable justice , Prosecution of master minds of financial frauds.
4. Averment:
Covering up Financial Frauds. Please read details at :
https://sites.google.com/site/sosevoiceforjustice/rbi---robberer-s-bureau-of-india ,
https://evoiceofhumanrightswatch.wordpress.com/2015/07/19/rbi-robberers-bureau-of-india/ ,
Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants in the following cases to perform their duties & to answer the questions.
The Petitioner has sent many letters / appeals / petitions to supreme court of india & other courts through e-mail , DARPG website & through regular mail requesting them to consider those as PILs. But none ofthem were admitted , even acknowledgement for receipts were not given. See How duty conscious ,our judges are & see how our judges are sensitive towards life , liberty of citizens , commonmen & see howcareless our judges are towards anti national crimes , crimes worth crores of rupees. That the present petitioner has not filed any other petition (which are admitted by courts) in any High Court or the Supreme Court of India on the subject matter of the present petition.
PRAYER:
In the above premises, it is prayed that this Hon'ble Court may be pleased:
a . Hereby , I do request the honorable supreme court of India to consider this as a PIL for : “writ of Mandamus” and to issue instructions to the concerned public servants , RBI authorities in the following cases to perform their duties & to answer the questions.
b . to pass such other orders and further orders as may be deemed necessary on the facts and in the circumstances of the case.
c. To legally prosecute authorities of M/s RBI & M/s BRBNMPL , who denied job opportunities to me under the behest of criminals responsible for late PM Rajiv Gandhi assassination case.
FOR WHICH ACT OF KINDNESS, THE PETITIONER SHALL BE DUTY BOUND, EVER PRAY.
Kindly read full details at following web page :
https://sites.google.com/site/sosevoiceforjustice/rbi---robberer-s-bureau-of-india ,
https://evoiceofhumanrightswatch.wordpress.com/2015/07/19/rbi-robberers-bureau-of-india/ ,
Dated : 11.08.2021………………….FILED BY: NAGARAJA.M.R.
Place : Mysuru , India…………………….PETITIONER-IN-PERSON
Public Questionnaire to Honourable Governor RESERVE BANK OF INDIA MUMBAI
Refer RTI APPLICATION No:
RBIND/R/E/20/04870
HEREBY , I DO REQUEST YOU TO GIVE ME WRITTEN STATEMENTS /
ANSWERS TO THE FOLLOWING QUESTIONS - WHICH IN ITSELF ( ie answers )
ARE THE INFORMATION SOUGHT BY ME.
WITH RESPECT TO CASE NO old CC34 / 1989 & NEW NO SC436/1991 AT 21
ST ADDITIONAL CITY CIVIL & SESSIONS COURT BANGALORE
CHARGE SHEETED OFFICER MR.G.HARIRAM RBI BANGALORE
CHARGE SHEET NO staff no.3698/156/84-85 dt 01.01.1985
Amended charge sheet staff no.3798/156-84/85 dt 08.04.1985
1. Why didn't you notice the alleged crimes of 1977 , 78 & 79 till the
mid of 1979 ?
2. This crime came to light only due to anonymous phone calls of good
Samaritans to authorities , but not due to your inspection . is your
inspection division working properly ?
3. why there is no security check up of officers during entry & exit
out of premises ?
4. why there is no individual weighment , individual statement of
value of bags of reissuable notes & bags of note meant for destruction
, after sorting is done, why they are not tallied with total weight ,
value of notes issued for sorting ?
5. Immediately after noticing the crime, why did not you transfer all
the employees of those sections ?
6. why did not you take steps to preserve3 & protect respective
documents relating to such high profile crime ?
7. why didn't you immediately issue charge sheet to all the accussed &
waited till 1983 ?
8. Why RBI has left out , so many officers ( who worked in the same
sections for more period than accused officers ) from domestic
enquiry ?
9. why CBI also failed to put those people in the charge sheet before
the court ?
10. is it because they were in favorable terms with the vested
interests ?
11. did the CBI dance to the tune of vested interests in RBI while
preparing charge sheet & during investigation , instead of
independent investigation ?
12. those left out probables from the charge sheet might have caused
the destruction of evidences / records. During the course of domestic
enquiry / court proceedings , it has been recorded that some records
have been destroyed. Are not CBI & RBI responsible for destruction of
evidences , aiding true criminals get away ?
13. in normal times , what is the period specified in RBI regulations
for preserving old documents / records ?
14. after noticing such a high profile crime the RBI must have taken
utmost care to preserve such old records for indefinite time , for
producing before courts of law as & when demanded. But it didn't ,
why ?
15. does not this point to connivance of higher authorities of RBI ,
with the criminals ?
16. RBI authorities have conducted domestic mass enquiries , instead
of individual enquiries , is it not detrimental to the rights of
defense ?
17. RBI authorities have stated that court proceedings & domestic
enquiry are independent of each other & are not binding on one
another. However RBI authorities straight away took on record of
domestic enquiry the court statements , evidences , but didn't honour
the order of same court of law ? why this double standard by RBI ?
18. The alleged crime was committed in 1977-79, but charge sheet was
framed in mid 1985 , why this long delay ?
19. didn't this facilitate the masterminds of crime to destroy ,
manipulate evidences ?
20. as stated before court , indeed some records , 22nd currency note
packet were missing , who is responsible for it ?
21. has the CBI conducted enquiry , polygraph test of RBI higher
officers - S.N.RAZDAN , W.S.SARAF , J.P.AWASTHI , J.MITRA & others ,
if not why ?
22. is it not due to inefficiency , negligence of duty by such high
ranking managers , that such a crime occurred in RBI Bangalore ?
23. what disciplinary action RBI has taken against the inefficient ,
negligent higher officials ?
24. whatever internal rules an organization makes must be within the
line of law. If such internal laws of the organization are violative
of law , fundamental rights of employees , such internal rules become
illegal. Are not the way of RBI disciplinary proceedings illegal ?
25. as per RBI pension regulations 1990 , RBI has the right to deduct
any loss caused to the bank , from the pension of RBI employee if the
misconduct of employee is proved in judicial proceedings . even though
mr.G.Hariram came out clean from the court , why RBI has denied his
pension ?
26. judicial courts of law are appellate authorities over & above ,
domestic enquiry committees & judicial orders supersedes the domestic
enquiry proceedings. Still RBI showed contempt of court & didn't
reinstate mr..G.Hariram into service , why ?
27. even if an employee's misconduct causing loss to the bank is
proved , before denying him pension (towards making up loss to the
bank) , previous sanction of the central board of RBI must be taken.
But in mr.G.Hariram's case , pension was denied in full without taking
previous sanction of the central board of RBI , is it not illegal ?
28. RBI alleged that mr..G.Hariram caused loss to the tune of Rs.14000
to the bank & recovered it from his provident fund dues. There was
nothing left over to recover , still RBI completely denied pension to
mr.G.Hariram , why ?
29. ideally, domestic enquiry findings / disciplinary actions should
be completed first , then the employee can appeal to appropriate court
of law. In mr.G.Hariram's case , CBI & RBI failed to prove the charges
in court of law , as a result court discharged him from the charges.
To cover-up it's failures RBI management dragged domestic enquiry much
beyond court orders date & gave findings indicting mr..G.Hariram. does
the enquiry officer of domestic enquiry think that he is over & above
the court of law ? is it not illegal & contempt of court ?
30. ideally , RBI authorities should have appealed to higher court
against lower court order discharging mr.G.Hariram from charges. But
it was not done , why ?
31. did the RBI pay interim relief to mr.G.Hariram , during suspension
period ?
32. the undue delay in filing charge sheet , consequent destruction of
key evidences , dishonour / contempt of court orders , undue haste in
giving findings , dismissal , denial of of pension without central
board's sanction , all point towards criminals within RBI higher
management. What disciplinary action has been taken against
J.P.AWASTHI, S.N.RAZDAN,J.MITRA, W.SARAF & others ? if not why ?
33. why charge sheet was amended? Is it legal ?
34. did the charge sheet was amended to falsely implicate
mr..G.Hariram , by including cancelled note vault in the charge
sheet ?
35. does not this itself show that it is not statement of actual
happenings / facts , but a cunning ploy to mislead investigation
towards fixed innocents from actual criminals ?
36. is it true that that only 5% of sample inspection is done out of
bundled verified defective note packets ?
37. is not the conduct of joint / mass enquiries of all charge sheeted
officers illegal ?
38. how come such an important evidence 22nd note packet went
missing ?
39. is it because it may point towards real criminals ?
40. as per the statement of management witness / inspection head /
expert mr.vijendra rao , the notes of earlier dates have been removed
from packets made into new bundles , right ?
41. as per his statement , entire certificates , seals of some asst
treasurers are there , who didn't work at all on that day is not it ?
42. does not it show that some body else was misusing the seals ,
putting some innocents seals over the notes ?
43. does it not show that , crime has taken place at verification
section ?
44. does it not show involvement of some asst treasurers ?
45. why asst treasurers have not been charge sheeted ?
46. why inspection of RBI Bangalore office was not done between 1975 &
1979 ?
47. is it not true that you failed to produce all records showing
internal inspection / audits , during domestic enquiry & court
proceedings ?
48. your expert mr.vijendra rao has stated that some seal marks are
smudged , he has stated some seal marks appears to be so & so. He has
clearly nowhere stated that this seal mark is exactly this , so he
himself is not 100% sure ?
49. your expert nowhere said that 100% sure this seal mark is this ,
on that day this seal was issued to mr.G.Hariram , isn't it ?
50. your expert says during 1975 , he didn't notice3 any fraud.
However approver says fraud was there before mid 1977 also. Why no
action has been taken ?
51. why you didn't produce all records of all persons , who have
specifically worked in alleged sections , the registers of those
departments with daily activity report containing seal nos , packet
nos , bag nos , etc ?
52. are not their chances of some criminals putting the seal marks of
innocent officers over the notes , bundles , bags , etc ?
53. your expert is not 100% sure of seal mark , your records are not
there to prove the presence of charge sheeted officers in the alleged
sections , neither your expert nor your records are 100% sure on what
date , at what stage , by whom crime was committed , isn't it ?
54. is not the charge sheet amounting to higher ups picking up
officers they dislike & falsely implicating them ?
55. is it not cunning ploy of higher ups to divert attention from
original criminals ?
56. why no action was taken against currency officer of 1977-79
mr.J.Mitra ? why his pension , super annuation benefits were not
withheld ?
57. what is your justification , supporting evidence , records for
picking up only three officers including mr.G.Hariram for legal
prosecution and leaving the majority of probables ?
58. why you have dropped charges against five asst treasurers ? why
you didn't even conduct domestic enquiry against them , let alone
legal prosecution ?
59. Is it RBI's & CBI's way of fair play & justice ?
60. as inly 5% sampling of verified note bundles are done , there are
more possibilities of rebundled packets getting unnoticed in relaxed
95% lot , isn't it ?
61. you have left out so many officers who worked in those sections,
some of whom even became management witnesses , instead of being
charge sheeted by the management, is it fair play & legal ?
62. who are the bank employees , from whom you have recovered the
alleged bank loss of Rs.220000 ?
63. were all of them charge sheeted , enquired , legally prosecuted ,
dismissed & their pension , gratuity withheld ?
64. you don't have any internal statuotary records to prove that
mr.G.Hariram worked in those departments , except a currency officer's
office note dated just on the eve of charge sheet years after the
alleged crime ? does it not prove that this note has been concocted
just to fix mr.G.Hariram ?
65. where as you have records of other officials attendance in those
departments , but not charge sheeted them why ?
66. three officers of staff grade A daily work in three sections out
of 40 officers , why you have picked up only mr.G.Hariram , out of
1095 working days , he has worked for only 223 days in those
sections , still those officers who worked for more days in those
sections are not charge sheeted why ? the approver , the management
expert witness , shift registers , V2 registers , Destruction
certificates , Form CD 55 , etc , nobody , no records were able to say
on what date , at what stage , by whom crime took place , also they
were unable to say on what date at what stage crime was committed by
mr.G.Hariram ? is it not futile imagination , cunning ploy of RBI
higher authorities to fix innocent Mr.G.Hariram ?
67. the management expert witnesses said , the most probable place of
crime is punching / Cancelled Note Vault , incinerator , where asst
treasurers were joint custodians . they were not enquired & let off
why ?
68. the charge sheet alleges extraction / substitution of
defaced note packets. Where as the management expert witness say
substitution of defaced notes only ? is not there difference between
loss of one number of note & 100 number of notes ?
69. as per the normal course of duty , staff officers does not
count notes in each bundles , but they just count the number of
bundles only. Is not there chances of inserted note bundles or bundles
containing less number of notes going unnoticed ? is it not the
failure of statuotary system of work practices ?
70. does not all these prove higher authorities of RBI & CBI
were hell bent to fix mr.G.Hariram & to shield the original
criminals ?
Questions with respect to other cases :
71. how do you monitor the work of bank officials nominated as
directors of companies which have availed bank loans ?
72. how do you monitor the work of companies , in which banks
have invested ?
73. how do you monitor the rapid wealth growth of certain bank
officials , who work in shares investment / equity funds section ,
etc ?
74. inspite of project reports by bank officials , over
assessment of collateral securites / value of debtor companies by bank
officials , the loans become NPAs & full value cann't be realized in
the market by selling off the assets of debtor companies also. In such
cases , what action is taken against erring bank officials who collude
with criminal industrialists for availing higher amount of loan than
permissible ?
75. give bankwise specific figures of NPAs.
76. give names of industrial groups / promoters whose
companies have become NPAs , so that public can be aware of them ,
before investing in new companies promoted by them.
77. is not collection of loan from debtors of bank through
rowdies / recovery agents , illegal ?
78. why not criminal complaints filed against bank mangers for
aiding , abetting rowdism , murdering people ?
79. if your method of employing rowdies to collect loans of Rs.
10000 from commoners is right , what would you do to a promoter of a
debtor company to recover loans of crores of rupees , supari killing ?
but debtors of crores of rupees is let off coolly by banks , why ?
80. what is the exact amount of loss caused to the exchequer
by karim lala telgi who printed fake stamp papers ?
81. what action has been taken against those involved ?
82. have you taken action against all those mentioned by telgi
during narco analysis test , if not why ? is it because they are
powerful & bigwigs ?
83. how you are controlling the illegal finance activities ,
money lending by individuals , pawn brokers & chit fund companies ?
84. how you are monitoring the receipt of public donations ,
foreign donations by many NGOs ?
85. how many erring NGOs , chit fund companies , pawn
brokers , individuals you have booked for illegal finance activities ?
Questions relating to RBI CURRENCY NOTE PRESS MYSORE
86. who were responsible for selling the good printing machine at
security press nasik to scamster karim lala telgi as scrap ?
87. who recruited the candidates below merit rankings in R.B.I for
what criminal roles ?
88. how many irregularities have taken place in R.B.I till date ?
89. who is responsible for installing, operating & supervising the
security set-up in R.B.I ?
90. how the raw materials ie number of paper sheets, ink, etc are
accounted for in inward stores & while issuing for printing ?
91. how wastages, scrap of ink , papers , etc in the printing process
are accounted for?
92. How the finished goods ie currency notes are accounted for ?
93. Who keeps physical figures & possession of goods, inventory of
all the above?
94. How the scrap paper is disposed off ?
95. From security angle who keeps track from start till dispatch ?
96. Give me the merit ranking list of all candidates for the
post of stores assistant in BRBNMPL in the year 1995-96 ?
97. give me the merit ranking list of all candidates for the
post of process assistant at BRBNMPL in the year 1996 ?
98. give me the merit ranking list of all candidates for the
post of process assistants & maintenance assistants at BRBNMPL in the
year 1996-1998 ?
99. is not RBI & BRBNMPL authorities created by statuotary
laws , fully funded by public money ie from government exchequer ?
100. still why BRBNMPL & RBI refused to answer my previous
information request as per RTI Act ? are you afraid that skeletons
will come out of cubboard ?
101. what action initiated against the SBI branch Bangalore & SBI
Overseas branch for loss of cheque / draft amounting to crores of
rupees ? if not why ?
102. give me specific figures bank wise with respect to loss caused
to the bank by loss of cheques or demand drafts , etc ?
103. how RBI is containing crimes of loss of cheques / DDs causing
huge losses to the banks to the tune of crores of rupees ?
104. To my previous rti requests and appeals you gave half truth information to few questions and for most questions you didn't answer. Your denial of information helped crime cover ups and aided criminals to escape & commit more crimes unabated. Crime cover up and aid to crime in itself is one more crime. Why should not you be together with RBI governor legally prosecuted for the same.
Date : 21.03.2021. Nagaraja M R
Place : Mysuru. Editor
State Bank of India rewards whistleblowers with dismissal, defamation suit
CHENNAI: Defamation complaints and dismissal from service - these were the gifts management of the State Bank of India showered on four of its employees who acted as whistle-blowers and exposed a series of 'currency bundle missing' cases involving several lakhs of rupees from various branches of the bank.
Halting the witch-hunt by top brass of the biggest bank in India and coming to the rescue of the employees one of whom was even dismissed from service, Madras high court said: "It is unfortunate that a public sector bank like the SBI should file a (defamation) suit not only claiming damages for loss of reputation, but also seeking for a prior restraint on the trade union in publishing hand bills, posters and putting up placards."
A division bench of Justice V Ramasubramanian and Justice K Ravichandrabaabu said, "Image of the bank cannot be confused with officers at lower level committing fraud, misconduct and embezzlement. Certainly when a trade union finds that action is not being taken, they can take the issue to the public and the grievance projected in no way amounts to defaming the bank. An employee working in a public sector bank also owes a public duty when public funds were frittered away or misappropriated."
In May 2006, a sum of Rs 30 lakh - six bundles of Rs 500 denomination - went missing from currency notes stored in the strong room of Avinashi branch of Coimbatore module in SBI's Chennai circle. Holding that chief general manager Pradip Chaudhary cannot be spared for the loss caused to the bank, three persons - M V Thangaswamy, president, S Gunasekar, general secretary and G Arasukumar, treasurer of SBI Ambedkar Trade Union - wrote complaints to the RBI and pasted posters seeking action.
In this regard, they pointed out that cash bundles worth Rs 5 lakh had gone missing from Salem branch, Rs 6 lakh went missing from Rasipuram branch, Rs 5.5. lakh from Aminjikarai branch, Rs 5 lakh from Kulithalai branch, Rs 6 lakh from Avinasi branch, Rs 1 lakh from Avinasi branch and the latest case of Rs 30 lakh going missing from the same Avinasi branch.
The bank hit back by issuing show-cause notices, memos, defamation suits and then dismissal of one officer from service, on the ground that they pasted posters without properly verifying the truth and with a view to defame the bank and cause damage to their business and reputation.
Setting aside the dismissal and other proceedings, the judges said, "It is seen from the contents of the posters that it was only an appeal to the bank for taking action. Specific instances were pointed out to the chief general manager to take appropriate action. Instead of taking action on the grievances projected by the trade union, the bank had filed the suit."
Exposing inaction of the bank in the light of a series of cash shortages can only be in public interest and making such statements cannot be detrimental to the interest of the bank, the bench said. The bank itself expects its officers to take all possible steps to ensure and protect the interests of the bank. Publishing or exposing the cash shortages in the bank and the inaction of the top officers cannot amount to willful damage to the property of the bank. It cannot even be said to be prejudicial to the interest of the bank, they concluded.
"Merely because it has exposed some irregularities, the poster will not affect the commercial interest of the bank," they said, adding that on the other hand, only by such exposures, correctional measures could be taken and the bank could assure the general public that all is well with them.
In this regard, the bench pointed out that it is usual practice for trade unions and public sector banks to publish the list of defaulters and the non-performing assets of the bank in order to bring it to the notice of the general public and the government, so that corrective actions can be taken.
Bad debts: Write-offs big fraud, give us defaulter list, orders Supreme Court
The Supreme Court ordered RBI to share information about cases where loans amounting to Rs 500 crore and above have been written off by public sector banks.
Taking suo motu cognizance of The Indian Express report that Rs 1.14 lakh crore of bad loans had been written off by state-owned banks between 2013 and 2015, the Supreme Court Tuesday ordered the Reserve Bank of India (RBI) to share with it names of all defaulters who owe over Rs 500 crore and continue to lead “lavish lifestyle”.
“People are owing thousands of crore to the public banks… it is a big fraud. Top ten public sector banks have written off Rs 40,000 crore alone in 2015. It is all there in this Indian Express report. Public financial institutions are lending money despite knowing no returns. RBI is supposed to keep a watch on these banks. What are you doing about it?” a bench headed by Chief Justice T S Thakur asked Solicitor General Ranjit Kumar.
On February 9, The Indian Express reported that a RTI response from the RBI revealed that while bad loans stood at Rs 15,551 crore for the financial year ending March 2012, they shot up over three times to Rs 52,542 crore by the end of March 2015. The government has been trying to shore up public sector banks through equity capital and other measures even as bad loans written off between 2004 and 2015 amounted to more than Rs 2.11 lakh crore.
More than half such loans (Rs 1,14,182 crore) were waived between 2013 and 2015. Responding to the RTI application which had sought details of the biggest defaulters, whether individuals or business entities, whose bad debts to the tune of Rs 100 crore or more had been written off, the RBI said: “The required information is not available with us.” Banks are required to report the bad loans on a consolidated basis, it said.
On Tuesday, the Supreme Court bench, also comprising Justices R Banumathi and Uday U Lalit, directed the RBI to submit details of defaulters with debts over Rs 500 crore, rejecting the banking regulator’s argument that it will have to first check the policy on such disclosures. The court was hearing a PIL filed in 2003 by NGO CPIL regarding alleged irregularities in advancing loans by the Housing and Urban Development Corporation Limited (HUDCO) when its counsel Prashant Bhushan handed over The Indian Express report, pointing out that the problem of bad loans has assumed dangerous proportions.
After going through the report, the bench questioned the Solicitor General: “This report is based on RTI… it is not based on the reporter’s assumptions. NPA (non-performing assets) declaration is not unknown to any economy but one has to be prudent in advancing loans, and cautious and vigilant in recovering it. Are you happy in keep funding these companies who declare themselves as sick companies and they have lavish lifestyle?” Ranjit Kumar said the government is taking steps under the SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act) whereby banks can recover loans in cases where NPAs are backed by securities charged to the bank by way of hypothecation or mortgage or assignment.
But the bench said: “Thousands of crore have been written off as bad debts on one day. You must recover that money. From this news report, it looks like a regular phenomenon. Thousands of crores are being written off every year and then you spend more money to recover money. Issue of bad debts is a general issue faced by public sector banks. This is plaguing all financial institutions, especially PSU banks.” It made RBI a party and issued notice, seeking details of defaulters where loans of Rs 500 crore and more have been restructured. When the RBI counsel said it would be difficult to adduce the list, the bench said: “You are supposed to keep a watch on these banks. What are you doing about keeping a watch if you don’t even have this information? You have a list of major defaulters who run empires and yet default. You file an affidavit showing extent of bad debts written off in last five years within six weeks.” It accepted the RBI counsel’s plea to let it submit the details in a sealed cover initially.
ICICI Bank:True to its Motto, Khayal Aapka, ICICI Welcomes Tainted Money to Make It Clean
A countrywide undercover investigation by Cobrapost finds ICICI Bank committing gross violations of the Income Tax Act, FEMA, RBI regulations and the anti-Money Laundering Act. These activities render the vast assets it manages, the deposits it maintains, the profits it makes, and the spectacular growth it has registered, suspect.
It was an innocuous visit by a journalist to the bank. The proposition was not innocuous: A politician wants to invest a huge amount of money to make it “white.” Would ICICI Bank officials help?
A six-month long undercover investigation by Cobrapost, codenamed Operation Red Spider, found almost all officials of ICICI Bank bending over backwards to help sequester black money and make it white. Bankers in scores of ICICI branches, spread across the states of Rajasthan, Haryana, UT Chandigarh, Delhi, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra were willing to help the Cobrapost reporter (posing as a relative of a fictitious politician) launder huge sums of ill-gotten money.
Living up to its Khayaal Aapka (We care for you) motto, almost all the officials of ICICI Bank, caught on camera, welcomed Associate Editor Syed Masroor Hasan. They suggested innumerable ways to convert black money into white: invest the black money in insurance, split the money in smaller chunks to avoid attention, open multiple accounts to make multiple invstments in different names, withdraw money after maturity and close the accounts. All this would serve the purpose of making the money legitimate without the Income Tax Department knowing.
The modus operandi the ICICI Bank officials suggested overall can be summarized as follows:
* Open an account to route the cash into the Bank’s menu of insurance products.
* Do it even without the mandatory PAN card.
* Split the money to invest in a diversified portfolio including gold.
* Invest in multiple instruments in the names of different individuals, not necessarily from among the family, to facilitate the investment of black money.
* Use dummy accounts to faceplate the conversion of black money.
* Get demand drafts made for the client either from their own bank or from other banks to facilitate investment without it showing up in the client’s account.
* Allot lockers for the safekeeping of the illegitimate cash.
* Personally come to the residence of the client to take the black money deal forward.
* Make a suitable profile for the client, such as showing him as an agriculturist or engaged in some businesses, so as to make the investment unquestionable.
* Help the client to transfer black money abroad either through NRE (Non-Resident External)/NRO (Non-Resident Ordinary) accounts or through means other than regular banking procedures.
Helping such bankers and insurers are certain loopholes in the system, such as Section 10-10 (D) and the provision of scrutiny of investments up to a period of 7 years, which are being used to clean customers’ money. But the Anti-Money Laundering Act clearly stipulates that any dubious transactions should be reported to the regulatory authorities and their records preserved for a period of 10 years.
Such was their eagerness to help that one ICICI Bank official who fell hook line and sinker for the fictitious story sold to him by the Cobrapost reporter, went about looking for ‘Vandana’, the invented wife of the invented politician and for the ‘Peeli Kothi’ in Noida, their fictitious home. As one official claimed: “Aisa hai Hindustan mein aisa nahin hai ki koi vyavastha na ho (In Hindustan, there is nothing which cannot be arranged).” Said another official: “Nahin toh kuch na kuch jugaad karte hain aapke liye (Otherwise, we will make some jugaad for you).” When asked if he could do it using some dummy accounts, yet another official offered: “Theek hai ghumate hain … ghoomega idhar se hi ghoomega (Alright, I will manipulate. It will be manipulated from here only).”
Since the start of its operations in 1994, ICICI Bank has emerged as the second largest bank in India, after SBI, with 2900 branches, a presence in 19 countries, and interests in life and general insurance, securities, and venture and asset management, among others. According to the information available on its websites, managing assets worth Rs. 4736.47 billion, the bank earned a profit of Rs. 64.65 billion in the fiscal year ending March 2012, a 20.3 per cent jump over the precious fiscal. What ICICI Bank has achieved in 19 years is phenomenal growth.
However, the revelations made by bank officials during Operation Red Spider raise questions about the bank’s methods, the culpability of the top brass in money laundering, and the failure of the regulatory authorities to monitor their activities.
- See more at: http://cobrapost.com/index.php/news-detail?nid=102&cid=28#sthash.A3aucIV4.dpuf
HDFC Bank: Bank on Us to Make Black Money White
A nationwide, undercover investigation across dozens of branches by Cobrapost reveals HDFC Bank is involved in extensive money laundering. The bank is blatantly violating various sections of the Income Tax Act, FEMA, RBI regulations and the Anti-Money Laundering Act, making the legitimacy of its deposits and its phenomenal profits and growth suspect.
It was a simple visit by a journalist, posing as a frontman of a politician, to the bank. So was its stated purpose: A huge amount of black money of the politician was to be invested with the bank. Would the officials help make it white? The rider: Under no circumstances should the politician be identified.
A six-month long undercover investigation by Cobrapost, codenamed Operation Red Spider, found dozens of officials of HDFC Bank, one of the oldest and most prestigious private banks in India, willing to help convert black money into “white”. Bankers across dozens of branches spread across the states of Rajasthan, Haryana, Delhi, Uttar Pradesh, West Bengal, Tamil Nadu and Karnataka, were willing to help our reporter (posing as a frontman for an imaginary politician) launder huge sums of illegitimate cash.
At almost all branches, the Cobrapost journalist got a red carpet welcome, with officials going out of way to suggest myriad ways of converting the black money into white, with the Income Tax Department never coming to know about it: invest the black money in insurance and gold; split the money in smaller lots to avoid attention; open multiple accounts with the bank and withdraw the money after maturity. Almost all the officials claimed they were old hands in helping customers turn black money into white.
Cumulatively, the modus operandi suggested by HDFC Bank officials to help launder a huge sum of the imaginary politician’s black money (source obviously criminal) was
* accept cash and invest it in the Bank’s menu of insurance products and gold;
* do it even without PAN card;
* keep the identity of the client secret;
* help the client to transfer black money abroad through remittance using “legal” methods;
* transfer the money telegraphically;
* open multiple accounts and close them at will to facilitate the investment of black money and withdrawal;
* get Demand Drafts made for the client from their own bank and other banks;
* allot lockers to the client to ensure the safe keeping for their illegitimate, scam-tainted cash;
personally collect the cash from the politician’s house.
All these acts constitute violations under various sections of the Income Tax Act, FEMA, RBI regulation and the Prevention of Money Laundering Act (PMLA) of 2002 which was promulgated to prevent the flow of money to groups or individuals who are a threat to the Indian state, its economy and social fabric.
Coming in handy for such acts are certain provisions, such as Section 10-10(D), which bankers and insurers use to help their customers to launder money. HDFC officials were so confident that they threw discretion to the winds while talking business with potential customers. As one official claimed: “HDFC baitha hi hua hai black money khane ke liye (HDFC has been set up to eat up all the black money).”
HDFC Bank began operations in 1995. In the 17 years of its existence, the bank has emerged as one the leading financial institutions in the private sector with interests in securities, mutual funds, realty, life insurance and financial services. According to information available on its websites, its deposits totaled Rs. 246,706 crore as of March, 2012. The bank has registered a more than threefold increase in its net profits – from Rs. 1590.12 crore in the fiscal ending March 2008 to Rs. 5164.96 crore in the fiscal ending March 2012. However, the information unearthed by Operation Red Spider throws doubt on the legitimacy of this growth story because it points to an illegitimacy of its deposits and therefore profits. In an ideal world where banks followed regulation and where regulators did their jobs, the story would have been different.
True to its dictum, We Know Your World, nobody knows the world of black money better than HDFC.
Listed below are the encounters Associate Editor Syed Masroor Hasan had in different HDFC branches:
- See more at: http://cobrapost.com/index.php/news-detail?nid=89&cid=27#sthash.Vq8BfSpR.dpuf
Top 10 Financial Scams in India
- Siddharth Singh
Financial scams have a habit of cropping up with an alarming regularity in the Indian financial system. We have reconciled to financial irregularities to such an extent that we simply do not pay heed to smaller scams that take place around us on a daily basis. I am, or rather was, a part of the financial machinery for a few years, and trust me, even the private sector is not entirely free of the machinations of unscrupulous and enterprising scamsters. The scope of the money involved multiplies manifold in the public sector, with a corresponding drop in accountability.
Financial Scamsters Are Rarely Punished
Despite a plethora of scams that surround us on a daily basis, frequently scams of large proportions come to light, and manage to stun even our jaded sensibilities. Then, there is the usual round of allegations, counter-allegations, enquiries and legislation. Some of our most notable regulations and financial institutions are the results of such scams.
I have compiled a list of ten leading financial scams in India, which have affected a large population of investors, and involved huge sums of money. They managed to shake the very foundations of our financial system, and were driven by that most basest of human instincts – GREED. In most cases, it was the greed of just one individual, or a very small group of individuals, who managed to pull of such huge scandals.
Insurance Scam – This scam had originated and prospered in the period immediately following Independence in 1947. At that time, the insurance sector was not nationalized, and a handful of private companies ruled the roost. These companies were more concerned with providing benefits to selected industrialists, and ignored the interests of the common man. The government responded by nationalizing the insurance sector, and the LIC was founded under an special Act passed by the Parliament. This scam laid the foundation of the nationalization culture in India.
Securities Scam – Harshad Mehta – This is perhaps the most well known of all financial scams – probably because it happened in a highly visible period – economic reforms had just been started in 1991. Harshad Mehta was quick to understand the weaknesses of the banking system, and exploited these weaknesses to the hilt. He managed to procure huge amounts of money using the so called “Ready Forward” deals, and used this money to purchase large amounts of shares at hugely inflated prices. He earned the sobriquet of “Big Bull” due to this penchant. Later, the banks got a clue of his shady deals, and demanded their money back. The house of cards collapsed, and the rest, as they say, is history!
CRB Scam – This scam took place in the years 1992-1996, the period immediately following the Harshad Mehta fallout. This makes the scam even all the more daring and surprising. CR Bhansali, the perpetrator of this scam, floated more than 100 companies, such as CRB Mutual Funds and CRB Capital Markets. The primary purpose of these companies was to attract huge funds from the public by promising high rates of interest. This interest was later paid form further borrowings, and so on. In 1995, the stock market collapsed, and this proved to be the undoing of CR Bhansali. He was investigated, and later arrested. After a brief 3-month stint in jail, he has disappeared without a trace, and nobody is asking!
UTI Scam – The UTI scam involved the flagship US-64 scheme of UTI, which was meant to channel the funds of small investors into instruments bearing high returns. Gradually, US-64 developed a investor base of around 2 crore investors. The economic liberalization in India, coupled with the absolute opacity in the operations of UTI, led to a situation wherein the Government was forced to announce a huge bailout of about Rs 3,500-4,000 crores in an order to prevent default in payments to the investors. The consequences of such a situation are unimaginable. But the story does not end here. Later, it turned out that the UTI Chairman appointed at this time, Mr P S Subramanyam, along with a couple of executive directors, acted wrongly to selectively benefit a powerful coterie of brokers and industrialists, while at the same time, jeopardizing the interest of lakhs of small investors.
Home Trade – Around the year 2000, a finance portal emerged on the financial landscape, and gained quick recognition on the back of endorsements by personalities like Hrithik Roshan, Sachin Tendulkar and Shahrukh Khan. The portal, owned by Sanjay Agarwal, claimed to deal in gilts. Soon, RBI got suspicious of activities of some cooperative banks in the gilt market, and a scam was uncovered. The same old saga – brokers and bankers combining to rob people of their hard earnings – was repeated. Funds from Seaman’s Provident Fund and PPF were affected. The total scam size was reported to be around Rs 300 crores, and more than Rs 200 crores were spent on publicity costs alone.
Ketan Parekh
Securities Scam – Ketan Parekh – That our system never learns its lessons was proved by this scam. Ketan Parkekh, a qualified CA, and a stock broker, identified a number of stocks (popularly called the K-10), and took up huge positions in these. For this purpose, he used a large number of Benami accounts and smaller stock exchanges, such as the Kolkata and Ahmedabad stock exchanges. He also borrowed heavily from banks such as Global Trust Bank and Madhavpura Mercantile Cooperative Bank. Unfortunately, he was stuck in a bear cartel, and was soon pounded to pulp on the stock exchange. The extent of the scam was estimated to be around Rs 1,500 crores.
Abdul Karim Telgi
Fake Stamp Papers – This scam promised to be the mother of all scams in India, with the initial reports quoting a figure of Rs 30,000 crores as the scam size. Later, RBI clarified that this figure was “rather exaggerated”, and the “correct” figure was around Rs 200 crores. Again, this scam exposes how the India system works – Mr Abdul Karim Telgi, the scam kingpin, paid bribes to get access to the security press in Nasik, where stamp papers and currency notes are printed. He later used this knowledge to print fake stamp papers. At the height of the scam, Telgi’s network spanned 14 states, 125 banks and more than 1,000 employees.
DSQ Software – Though this scam was modest in terms of money involved (only Rs 600 crores!), and did not affect the general public to a great extent, yet it is notable for how it came into being. The main player in the scam was Mr Dinesh Dalmia, who was the MD of DSQ Software Ltd. This company issued around 1.3 million shares in 2001, and these shares were allotted to four companies on a preferential basis. NSDL, a stock depository, dematerialized and helped in delivering the shares. Nothing wrong in that, except that the shares were not even listed on any stock exchange! Oops!
IPO Scam – A number of key operators, including corporate stock brokers such as Karvy and Indiabulls, were involved in the IPO scam that spanned the years 2004 – 2005. The modus operandi was simple – the operators would open thousands of fake accounts to purchase shares in IPOs, in the hope of selling later at huge profits. A spate of IPOs issued during this period were heavily oversubscribed due to this scam, sometimes by as much as 40 times!
Satyam – On a cold January morning in 2009, Ramalinga Raju, chairman of Satyam Computer Services, admitted to falsification in the company accounts and various other irregularities, and sent a chill down the collective spine of the Indian financial system. Coming on the back of the global recession, this incident promised to bust the Indian outsourcing industry and the stock market, but for some deft bailout work by the government. The matter is still under investigation and litigation, and the true extent of the scam will be known in the future, perhaps. Mr Raju himself had admitted to irregularities worth around Rs 12,000 crores.
An analysis of the scams reveals a common script – greed, corruption, unscrupulous brokers, colluding bankers, irresponsible authorities and hapless investors, who refuse to learn their lessons. But then, these are the essential ingredients of a worthy financial scam!
Edited, printed , published owned by NAGARAJA.M.R. @ # LIG-2 No 761,
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