12.7K Crore PNB Scam is NOT either the FIRST or the LAST..Why We-Fuss?
12.7K Crore PNB Scam is NOT either the FIRST or Last..Why the Fuss?- RTI Activist Dheenadayalan Selvarajan, Mangaluru
Mangaluru: Addressing the media persons during a press meet held at Mangalore Press Club, RTI Activist Dheenadayalan Selvarajan of Ashoknagar, Mangaluru said, ” The reaction of the Government towards the PNB Scam show-up its poor understanding of the Scam either for its Basics and Magnitude. Fugitives Bill- 2018 and new Audit Regulatory Authority are nothing but exercise of counting of Stars in the Day Light because….. LOUs (Letter of Understanding) are short-term credits extended to the Corporates without any Securities / Collaterals as they are bluntly called Unsecured Loans. So, the recoverable assets within the reach of the Bank will be nothing but the number of zeroes in the extended Loan. Moreover, a Corporate defaulter aware of being declared a “Fugitive” can strategize his exit from the country because he disowns only 10% of his owes to the Bank; whereas, the lending Bank will be left with the balance 90% woes.”
“The PNB Administration had refused to honour the LOU’s extended to Nirav Modi; wherein, factual Money Transfers were made to firms of Nirav Modi from the coffers of multiple Banks at Foreign Soil. The PNB was asserting that it had not extended any such facilities to Nirav Modi whatsoever in the past 7 years; as such, the PNB will not be in a position honour any of the commitments made by its own Employees.”
“It’s simple that the Administration of the PNB was not in possession of a single piece of paper signed by Nirav Modi or his authorized Signatories leave alone any signed Documents, which we are compelled to sign even while we seek a loan to the tune of a Thousand. In short the Bank was not in possession to prove that there were Loan contractual obligations with Nirav Modi at any point of time.” added Selvarajan.
How was it made possible? The Bank was claiming that the Money Transactions, which were executed as part of the LOU were not linked to the Core Banking System. What it means? The Banks in India are possessed with Standalone Computers which can generate Standalone Loan Account Statements, Notices, Messages and what not. The employees of the Bank are able to abuse this Standalone parallel Computerized Environment to deceive the companion Banks. It’s pathetic to note that a country which was made to go upside down to remove any trace of “Black Money” was made to stand witnessing a Banking spectacle “Black Hole”.
About the 12.7K crore PNB Scam is not either the First or the Last…Then Why we fuss? The RTI revelations: More and more PNBs – (Partnership Net-worth Benefit Settlements) are bound to happen because…..
RTI reveals serious anomalies in the Banking System promoted in India. The Fault-lines run all through the all the public institutions of the Reserve Bank of India (Supervisory), Central Vigilance Commission (Vigilance), ICAI (Audit) & Banks (Finance Dispersal).
Petition to PMO 5th June 2014:
The Domains of Conflict of Interests – Interests of the Financial Institutions & Investors with that of Financial Interests of the Customers (Borrowers) are left with the Reserve Bank of India. As such, an imminent segregation of the Domain of the Credit Financial Services extended to the Larger Public as part of the Financial Inclusive Policies from the purview of the RBI has not been done.
Reply dated 29th April 2015 invoked from the RBI through PMO:
…We appreciate your interest in painstakingly analyzing various issues facing the country’s banking system including the working of the Reserve Bank of India. During the last few months various departments of RBI have carefully gone through your observations. Our reactions to your queries and suggestions are as follows.
….You would agree that Banks/financial institutions are by definition financial intermediation agencies- in this they and their borrowers are essential counterparts of the credit market.
Walter D’souza- also an RTI Activist was also present on the dais during the press meet.
For more details contact: Dheenadayalan, R.T.I . Activist, Ashoknagar, Mangaluru
Phone: 9739461263
email: dhayal.rti@gmail.com
visit http://www.f3banking.com
