Beyond the loan default of Rs. 90000 crore by Vijaya Malya and Rs. 12,646 crore loan default by Nirvav Modi and Mahul Choksi, much bigger bank fraud of Rs. 15,500 crore has come to light committed by a N.R.I Tatpur Anandan Anand Krishnan through his Telecom Company Aircel.
While Vijay Malya, Modi and Choksi fled away from India and have declined to come back to India Mr Krishnan has gone up much more sinister by declaring bankruptcy and now not required pay back under the system and rules of bankruptcy.
Mr Krishnan is a certainly 'wilful defaulter. He is settled in Malaysia and third richest man of that country. Perhaps he came to India knowing well that it is very easy to operate clandestine way with the banks in India.
Aghast and Bewildered the Government of India and the Reserve Bank of India have turned on the lender banks after 2 billion loan fraud. The Reserve Bank of India has started special audit of the commercial banks operating as Government of India undertakings.
The special auditors are not under the banks and deployed in the job by the R.B.I. and will report to it. The special audit is closely looking into trade financing guarantee letters known as L.O.U- letters of understanding.Most of the bank defaulters were favoured with these letters to secure loans from the other banks on the guarantee of the issuing bank.
It is actually is not fraud by industrialist, businessmen, jewelers etc. but committed by the bank staff itself. They received huge amount of money through these person by assuring them that their cases will never come to light and there would nothing like returning the loan are any disclosure.
Nirav Modi openly chared the Punjab National Bank of bringing his case openly in public violating its commitment to him on keeping it secret. He also said actually he was paid loan of Rs. 5000 crores and rest of the amount was taken by the bank officials. Vijay Malaya also stated the same thing that now entire amount was with bank interest are being shown as due and default by him.
In the P.N.B fraud it big officer Shetty was the kingpin also trapped the big business houses to get loan and never bother to repay it. The P.N.B. scam came to light when Shetty was transferred and his successor discovered huge bungling in loan account. Hurriedly the public sectors banks transferred about 18,000 bank staff and the processes are continuing.
It seems almost certain the special audit in the banks will reveal bank frauds of millions of rupees much more them what has been known so far.
The Reserve Bank is examining whether the banks who granted so much loans, have limit permission to that extend or not ? In special audit it may come out that the banks are not victims rather they victimized and trapped the big business house. The Bank staff may emerge as Kingpin on the all the scandals.