Bankers Fraud


As the things are unfolding after the 15,000 crores loan scam in the Punjab National Bank it appears that it is not a business fraud but bankers fraud. The bank officials are not trapped by tycoons but the business house are trapped by the corrupt bankers holding key positions in the banking system. The lured them to take loan and assured that nothing would come out in the Government and public knowledge. This scam should not by judged with one side prejudice towards industrialists. The Punjab National Bank has transferred 18,000 bank staff and arrested one more official General Manager Rajesh Jindal. In other banks State Bank of India, Bank of Baroda, Industrial Development Bank of India, Allahabad Bank etc. mass transfers of bank officials are being carried out. Meanwhile in a public interest litigation the Supreme Court in this matter ruled that it would not pre-empt Government’s PNB probe of Rs.11,500 crores scam. Mr.Rajesh Jindal was Manager in the Bradi Branch of PNB in Mumbai in 2009-11 and since then the LOU and LP were issued to Nirav Modi and Mehul Choksi overlooking the rules and regulations. The letter of Nirav Modi of the PNB revealed many things that PNB dues on him highly exaggerated and he is liable only for Rs.5000 crores. This shows that major part of the Rs.11,500 crores were taken away by the bank officials. They assured him of total secrecy in the deal and now made it public. It has demolished his credit in the business world and none of them would come forward to help him. It is further said about Nirav Modi and Choksi their companies having fictitious name of very poor people living in the Chawls and Jhuggi in Mumbai. Obviously the companies solely belong to Modi-Choski and other fictitious names and just formalities to get the company registered. When these companies were registered under the Companies Act, the officials dealing with it never bothered to call or meet the other directors for proper verifications. It was all just stage managed compliances of official papers as a mere formality. There is no denying the fact that before bank loan framed Mr.Vijay Mallya was very sound and solvent industrialist of India. In his 9000 crores loan major portion were taken away by the bank officials but entire loan is mentioned on his name alone. Actually the bank official have ditched and betrayed Vijay Mallya and others. Union Finance Minister Mr.Arun Jaitley is putting blame of Chartered Accountants (CA) for not being able to find out such irregularities. The CA are just either regular salaried staff of business house or they are hired on fee for audit work like advocates in the criminal and civil court to defend their client. The CA also serve the interest of their parties. In many Government schemes the CA certificates are required and the people easily get it by paying fee to the CA. It is emerging as bankers fraud and manipulation to cheat the bank and banking system.