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Another Bank Fraud


After Vijay Mallya – King Fisher, Nirav Modi-Mehul Choksi –Jwellers, Kothari family of Kanpur of Rotomac Pen and Pan Bahar Masala now another bank fraud in the Oriental Bank of Commerce of Rs.390 crores has emerged on the Jeweller Firm Dwarka Das Seth International of Delhi dealing with exports of diamonds. The entire Seth family and the company director are not traceable and it appears they have also fled away from the country. Their company was also found engaged in business transactions with non-existent entities.But it appears that this Delhi OBC fraud is much more serious that the last three case of Mallya-Modi-Kothari. In this case even the role of CBI is suspicious. The OBC filed complaints with CBI some seven months back on 16 August 2017 but the CBI has not acted on it and only now on February 22 in 2018 it registered the case against Delhi Jwellers Company. Had it acted promptly they would have been arrested. It is appears as if the offenders were given time and opportunity to escape from the country. In other cases also people are accusing the Government that it facilitated the escape of bank fraud people from the country deliberately. In Bihar there is one women society saree export organization “Srijan” had committed serious bank fraud and matter is referred to the CBI but it has done nothing so far. Besides these few big scams in almost all the banks there is NPA racket of thousands of cases involving total of crores of rupees. The NPA is so much that bank have no capital to carry on business. In all the bank loans there is set system and procedure of securing proper guarantees by way of property on some solvent person standing as guarantor. It is meant that in case of default the bank would be able to recover it. It is the obligation and responsibility of bank to verify the guarantee papers and persons. But in most of the case fake guarantee were accepted by the bank officers themselves to have 50 per cent cut from the loan amount for them. Now entire credit is shown against the creditors who say that they were not paid full amount. The bank official assured such cases there would not be any bank recovery proceeding against them. The Union Finance Ministry has not done its job of control and supervision on the banks and their fault in much more than others.

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