CBI Action Against Bank Officials

Whatsoever Sri Arun Jaitley Finance Minister  may do or or promise or claim to do to deal with bad loans of Public Sector  banks but it is not easy for him to stop rising trend  in bad debts of these banks as long as he is able to understand the root causes of it. He will have to change the culture of bankers and politicians from grass root level and from core of their heart and mind which is a Himalayan task for him to perform. Let us wish best for him, for common men ,for bank customers, for investors and for taxpayers. They will have to bear the brunt of mismanagemnt of PSU banks for decades to come . There is no way out visible to me keeping in view the attiture, approach and action taken so far. Only bearer knows where the shoe pinches. The person who has worked in PSU bank for decades know the ground reality of processes applied for sanction of a loan or for promoting a bank staff. At least I can visualise the dark days of banks looming large. Unless and until , government is able to stop culture of flattery and bribery at all levels in bank as also in administration, judiciary and government in general, one should not imagine of any reformation in bank and any reduction in actual volume of bad debts. Bank Officers in general work for pleasure of their bosses and politicians in general act keeping in view vote bank. None of them are actually interested in upkeeping and health of banks. They are master is preaching sermons and deliver of good lecture to mislead and misguide common men. I am not master in speaking or writing as they are  but I can understand the quality of  deep rooted  evil culture in banks as well as in politics. CBI REGISTERS A CASE AGAINST THEN CMD OF UNITED BANK OF INDIA & OTHERS AND RECOVERS ASSETS WORTH CRORES DURING SEARCHES

Press Release New Delhi, 15.09.2016

The Central Bureau of Investigation has registered a case under section 120-B of IPC r/w 13 (2) r/w 13(1) (d) of PC Act against then Chairman & Managing Director, United Bank of India; a private firm based at New Delhi; another private firm based at Kolkata and other unknown persons. It was alleged that the then public servant while posted as ED of Canara Bank in the year 2011 & as CMD of United Bank of India in the year 2013 had abused her official position & obtained certain amounts for herself or for a New Delhi based private firm (owned by her husband & her son), from the companies to whom various credit facilities were granted by the banks, where she had worked.     Searches conducted at the residential premises of accused persons in Delhi, Noida, Mumbai, Kolkata & Howrah led to the recovery of jewellery worth Rs. 2.85 Crore (approx) & Rs. 10.50 lakh (approx) cash from the bank lockers in her name & her family members; deposits of Rs. 5.42 crore (approx) in her name & family members; Rs. 2.26 Crore (approx) in her bank accounts; documents of two properties i.e. a three storey Bungalow at Noida & a flat at Vasant Kunj, New Delhi and two properties in the name of her family members in Delhi & Mumbai.    Further investigation is in progress. CBI ARRESTS A PROMOTER OF TWO PRIVATE COMPANIES AND CONDUCTS SEARCHES AT NINE PLACES IN AN ON-GOING INVESTIGATION OF A CASE Press Release New Delhi, 20.09.2016                   The Central Bureau of Investigation has today arrested a promoter of two private companies and conducted searches at 9 places in Mumbai, including the residence & office premises of said Promoter of Mumbai based two private companies; then Executive Director, SEBI and others in an on-going investigation of a case. Incriminating documents, including transfer of shares by private companies, FDR, purchase of assets etc., recovered during searches are being scrutinized for further investigation.              This case was registered U/s 120 B of IPC read with Section 420 of IPC & Section 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 against the Promoter of Mumbai based private company; four then SEBI officials and others on the allegations of connivance of the SEBI officials with private company/stock exchange (MCX-SX) of Mumbai in fraudulently allowing renewal of recognition of said company/stock exchange to conduct trade in currency derivatives in 2009-2010. It was further alleged that the said private company/stock exchange had dishonestly entered into a buyback arrangement with some financial institutions in violation of the Securities Contract Regulation Act, 1956 and other rules & regulations and deliberately suppressed this material fact while applying for extension of its recognition to operate in currency derivative. The SEBI allegedly rejected the request of private company/stock exchange for trading in other segments in 2010, but renewed the registration granted to said company/stock exchange even though it was not compliant to SEBI MIMPS Regulations.              Further investigation is continuing. CBI REGISTERS A CASE AGAINST TWO THEN DIRECTORS OF DELHI BASED PRIVATE FIRM AND OTHERS FOR CAUSING AN ALLEGED LOSS OF RS.4138 LAKH(APPROX) TO INDIAN OVERSEAS BANK Press Release New Delhi, 16.09.2016          The Central Bureau of Investigation has registered a case on a complaint from Indian Overseas Bank (IOB), Regional Office, New Delhi u/s 120-B r/w 420, 467, 468, 471of IPC and Sec. 13(2) r/w 13(1) (d) of Prevention of Corruption Act, 1988 against the then two Directors of New Delhi based private Air travels firm and other unknown public servants & private persons.        It was alleged that the accused persons in connivance /criminal conspiracy with the branch officials and with each other had siphoned-off the bank funds sanctioned under CC Limit and as Bank Guarantees to said firm. The accused persons allegedly submitted fabricated financial statement for availing credit facilities and the enhancement of the same. It was further alleged that through submission of false Book Debt statements, the accused person induced the bank to disburse funds which were siphoned off, causing a loss of Rs.4138.85 lakh(approx) to the complainant bank.        Searches were conducted at 04 locations in New Delhi which led to recovery of incriminating documents & certain Hard Disks.        Further investigation is continuing. CBI ARRESTS THEN DIRECTOR(IA&AS OFFICER) WORKING IN THE OFFICE OF DIRECTOR GENERAL(AUDIT) AND TWO OTHERS IN AN ON-GOING INVESTIGATION OF A DISPROPORTIONATE ASSETS CASE Press Release New Delhi, 09.09.2016                    The Central Bureau of Investigation has arrested then Director(AMG-II) working in the office of Director General of Audit (General Expenditure), AGCR Building, New Delhi and two other persons including brother-in-law of then Director(AMG-II) in an on-going investigation of a disproportionate assets case.      A case was registered on 09.10.2014 against then Director(AMG-II), an IA&AS Officer working in the office of Director General of Audit(Gen.Expenditure), AGCR Building, Indraprastha Estate, New Delhi and others on the allegation that the accused had amassed assets to the tune of Rs.1.67 crore (approx) which was disproportionate to the known sources of income.     This case was an off shoot of an earlier case registered during 2014, in which brother-in-law (a doctor) of public servant was caught by CBI for accepting Rs.5 lakh as bribe on behalf of said public servant for not harassing the officials of a Nursing College based at Manapakkam. During searches in the trap case, an amount of Rs.97, 96,000/-(approx) was recovered from the house of brother-in-law of public servant. A chargesheet was filed in this case on 31.10.2014. The case is under trial in CBI Court.     The arrested accused persons were produced in the Court of Special Judge, CBI Cases, Chennai and remanded to judicial custody till 21.09.2016. FOUR YEARS RIGOROUS IMPRISONMENT TO THEN BRANCH MANAGER OF ANDHRA BANK AND THEN DIRECTOR OF PRIVATE FIRM FOR CAUSING LOSS OF RS. 1.44 CRORE (APPROX) TO BANK Press Release New Delhi , 08.09.2016                   The Special Judge for CBI Cases, Bangalore (Karnataka) has convicted Shri A.E. Devandranath, then Branch Manager, Andhra Bank, Chamrajpet Branch, Bangalore & Mr. F. Don Bosco, then Director of M/s. J.J. Fashion Studio Pvt. Ltd., Bangalore and sentenced them to undergo four years rigorous imprisonment with a fine of Rs.50,000/- each U/s 420 of IPC. Shri A. E. Devandranath was also sentenced to undergo two years RI with fine of Rs. 25,000/- U/s 13(2) r/w 13(1)(d) of P.C. Act 1988.      CBI had registered a case on 27.12.1999 on complaint received from Andhra Bank against Shri A.E. Devandranath, then Branch Manager, Andhra Bank, Chamarajpet Branch, Bangalore; M/s. J.J. Fashion Studio Pvt. Ltd., represented by its Director, Shri F.D. Bosco and others u/s. 120-B r/w. 420 of IPC and Sec. 13(2) r/w. 13(1)(d) of PC Act, 1988 alleging that the Branch Manager cheated the bank by allowing various packing credit facilities to M/s J.J. Fashion Studio Pvt. Limited, Bangalore in gross violation of the Bank’s laid down procedure and guidelines. Further, the accused accepted the foreign export bills of M/s J.J. Fashion and gave credit facilities to the company without waiting for the realization of bills & obtaining required information. He did not conduct periodical inspection and accepted false & inflated stock statements and also allowed packing credit against fax copies of the order in the name of sister concerns of the borrower. An alleged loss to the tune of Rs. 1,44,72,580/- (approx) inclusive of interest was caused to Andhra Bank. After investigation, chargesheet was filed on 31.08.2001.      The Trial court found the accused guilty and convicted them. My Observation on Government is however different from that of media and that general public.  Some section of media and that of Politics appear to be fully prejudiced. Bad loan creation took place due to corruption in banks and in politics. This culture is creation of Congress party which ruled over us for decades in the name of poor. Indira Gandhi nationalised banks apparently for poor. From 1991   exploitation of bank got started and slowly accelerated in the name of autonomy and freedom and it continued toll now. Culture does not change overnight. It was absolutely due to wrong policies of P Chidambram, Manmohan Singh and preceding FM under rule of Congress  party or UPA that bad loan rose to such an high extent. During that period bankers were forced to hide bad loans and project rosy pictures of bank to attract investment.  Under Modi rule ,bad loans are getting exposed. There are thousands of Mallya still hidden from public eyes . You appear to be victim of media vendetta created around Mallya to tarnish image of Modi. Sanction of loan takes place in banks and pressure comes from ruling Party. Now you can imagine who are real culprit. If an MP or a Minister or mr. Jaitley sits beside a looter in Parliament, it does not mean that looter is his product. Do you think that Jaitley should sir outside Parliament only because Mallya was sitting inside?  Have you not been a witness of sanction of loan to bad borrowers by higher bosses even though existing irregularities. Jaitley is no where part of story of bad loan creation. So far as misuse of power is concerned it is human nature and only a few can keep distance from it though with lot of suffering. He is making true effort from his mind and he may not get desired success or may get depends upon his ability to identify root causes of sickness and then prescribing proper medical treatment to cure it.. It is best management of Jaitley  and his   government that bankers are now actively involved in recovery of past dues. At the same time they are  slowly and gradually exposing hidden bad loans. More than ten lac crores of loans are bad and it is not easy for any government to recover it with ineffective judiciary,ineffective administration and wrong culture of Politics taken roots all where. Jaitley might have recommended for loan to few persons when he was in opposition. But Chidambram and his colleagues did during their rule is much more voluminous. It is like Khira  chor and Hira Chor