No Scam Is Bigger Than Hidden Bank scam In Form Of NPA and Fraud

Wednesday, August 8, 2012

Fraud and Manipulation Is Deep Rooted Culture

Culture of fraud is deep rooted in Indians. Fraud and manipulation are at the root of all successes barring a few exceptions. If a person enters into any government service by paying bribe or by using the source of some VIP or by using any unfair means as per demand of the situation, he is bound to promote fraud culture, he is bound to apply all tools to earn money and power by same brand of illegal means to gain money power, positional power and finally to become a attractive figure in the society. Similarly if a businessman or a trader has to pay bribe for starting and continuing a business he will tend to use unfair means to earn more and more wealth to perpetuate the corrupt culture.

This is why Banks incurred loss of about Rs.2000 crore in 2010, Rs.4000 crores in 2011 and Rs.2500 crores from January 2012 to June 2012 due to fraud committed by bank employees or by bank customers .It is important to mention here that these figure represents only those cases of frauds which caused loss to bank by amount more than Rs.1.00 in one cases. If the amount lost by bank in petty frauds i.e. cases involving less than one crore rupees , total loss caused by frauds to banks will be much more than banks appear to suffer loss due to bad assets.

As a matter of fact volume of fraud by number and by amount involved will go on increasing until the government stops mal practices prevalent in recruitment, promotion and transfers of services in banks and other government offices. Loss by frauds or by bad assets may be reduced to minimum not merely by strengthening control mechanism but by striking at the root of corruption wherefrom it originates.

It is also true that after the exposure of fraud of Mr. Harshad Mehta or Mr. Telgi or Mr. Raja or Mr. Kalamadi , the perception about loss has completely changes. Now a days loss of one crore or ten crore rupees by fraud or by bad lending caused to any bank or any organization is treated as very small crime and treated in a very casual manner. This is why CBI has instructed banks not to report the cases of fraud to CBI if the value involved is less than three crore rupees.

 As a matter of fact government does not want to punish the evil doers but want to punish those who raise voice against the evil doers. This is why the person who report the cases of fraud with the system or who report the incident of corruption or any crime is taken to task not only by the evil doers who are exposed but by the protecting agencies like police , CBI  top officials and ministers forming part of the  government. 

Government did not try to understand the exposure made by Team Anna and neither they thought it fit to frame strong Lokpal but they left no stone unturned to torture key members of Team Anna on flimsy grounds and puncture the movement.CBI or nay top officials who try to precipitate real criminal by their devoted and sincere investigation are transferred to remote places so that the prime evil doers are saved from further exposures. Similarly judges in courts and top officials in all departments are removed from the post if they make efforts to reveal the truth of the system.

CBI does not get time to devote on cases related to ministers and VIPs but have enough time to trap Bal Krishna , disciple of Ramdeo Guru and they got success in sending him to jail without loss of much time.CBI did not not think it fit even to penalize Passport officer in the same way as Bal Krishna was.

It is the tradition and it is the strategy of the top ranked officials to save bad persons and to punish good persons. This is why they do not like to act and respond on anonymous complains, anonymous emails or anonymous message even if they contain serious facts of fraud and manipulation with the system. Top officials try to investigate who are sending anonymous complains to expose the truth but never tries to look into the truth hidden in such messages. Police starts torturing the person who go for lodging FIR against any VIP because they know it is VIP who may help them in trouble or when their misdeeds are exposed by media or any crusader or any whistle blower.

This is why honest speakers do not want to speak the truth of frauds or any crime incident to police or CBI or any investigating agency. Everyone knows that the people who speak against criminal are to face the torture of the system.

Further government also makes all efforts to weaken the capacity of police, CBI , Court and all agencies which are meant to provide justice and punish evil doers .Government will never provide adequate manpower and infrastructure to these protecting agencies so that they may not pursue the cases of fraud or any crime to its logical conclusion.

This is why lacs and crores of cases against actual criminals, evil doers and fraud committers are pending in Indian courts and in topmost offices of CBI or CVC and on the contrary lacs of innocents accused of crime are languishing in jail waiting justice by court or by CBI or CVC.

It is pity that an officer who is entrusted to prevent corruption is not provided proper infrastructure whereas those who are master in fraud and crime are provided all support and all infrastructures.

It is further disheartening that in the current era of information and technology when most of the works are done online and on computers, adequate policies and tools are not developed to prevent misuse of technology. More disheartening is the fact that all departmental heads and the government in general look into academic qualifications of the person, his flattery quality and his appearance before recruiting him or and before elevating him or her to higher post attracting higher responsibilities. Character of the person has either become the last point or has become NO-POINT at all levels. This is why I usually say that the culture of fraud and manipulation is deep rooted and the culture of flattery and bribery irrigates and promotes the same.

If at all government want to reduce level of corruption prevalent in government offices, they have to fight it out on all fronts

• Ensure Quality education (Stop Giving jobs of teachers on recommendation of VIP or through bribe).
• Ensure honesty in recruitment, promotion and positing in all offices and in all departments (stop recruiting inspectors on payment of bribe).Stop promotion of flattery culture.
• Ensure timely punishment to evil doers after quickest investigation into all types of allegation and all acts of fraud including that in Human Resource Department. Punishment to evil doers should send a message to all that if they commit crime they will face the same consequences.
• Ensure all protection to those who expose the fraud, who informs the facts of crime and who tries to awaken the system of persisting irregularities.

Unfortunately, most of the key posts are manned by corrupt persons and hence they make all efforts to close the files of evil doers if willingly or unwillingly the evil works of him or her is exposed by any person or any group or by media. Who will then bell the cat?

The greatest tragedy of our country is that there are hundreds of sympathizers of a person whose evil works are exposed and who are likely to be punished. There are hundreds of well wishers who make all efforts to save such evil doers from punishment. On the contrary there are none to save an innocent person who is wrongly or under a conspiracy by a team of evil doers is falsely alleged of evils and who is punished for none of his or her fault.

There are persons in all offices who ridicule and who laugh at a person who advocate honesty and who try to ensure justice or try to punish who perpetuate reign of injustice.

after the launch of reformation era in 1991 when banks were given complete freedom to recruit and promote strictly as per their choice in the name of merit and recruit and promote fully based on their  whims and fancies they forgot to verify the credentials of officers and staff joining the bank. 

Before that, banks used to get credentials of a new recruit got verified by two valued persons of his locality. Now these banks ask for police report which is obtained by payment of a few pieces of five hundred rupee notes. This is why persons with doubtful integrity has entered into various banks and they managed timely and before time promotions by managing their bosses by offering what bosses liked , it may be any of WWW or all three WWW. 

Due to this ,persons of bad integrity not only entered into bank but could reach upto even highest level and that is why volume of fraud and bad assets have gone unchecked and now appears to be beyond control and have crossed all prudential limits set by RBI or GOI

NOT only NPA But Growth of Frauds Is Also With Alarming Speed

CBI developing database to curb banking frauds

  TNN | Aug 8, 2012, 01.18AM IST  ( collected from times of India )
NEW DELHI: The CBI is developing a database of bank fraudsters to check cheating cases, which have resulted in loss of Rs 3,799 crore during 2010-11, an increase of 53% as compared to the previous year, agency chief A P Singh said on Tuesday.

"Banks lost Rs 2, 017 crore due to frauds in 2009-10. This has seen a quantum jump in 2010-11, with the loss amount rising to Rs 3,799 crore," he told the annual conference of Chief Vigilance Officers of public sector banks and financial institutions. "While CBI's Bank Securities and Fraud Cell registered criminal cases involving Rs 4,000 crore in 2011, cases regarding frauds worth Rs 2,500 crore have been registered from January to July this year," he said.

Singh said the CBI is developing a Bank Case Information System (BCIS) which contains names of accused, borrowers and public servants in its records. "This information may also be made accessible to field functionaries of the banking sector in collaboration with the Indian Bank Association (IBA) once modalities are worked out," he said.

Delivering the keynote address, Singh said the increasing amount of frauds in the banking sector is a "disturbing factor". The CBI chief said the agency would now probe only those bank fraud cases where loss is more than Rs 3 crore, while those below it would be investigated by the state police.

To read further click on following link

http://dkjain497091112006.blogspot.in/2012/08/not-only-npa-but-growth-of-frauds-is.html

Whimsical promotion, whimsical transfer and posting are the root cause of all types of irregularities, deficiencies, corruption, and mal-administration in the family, in the society and in the country as a whole. Whenever a new departmental head joins his duty or a new Chief Minister takes charge of the state, or a new government comes to power at the center, chain of whimsical transfers takes place causing unwarranted annoyance among talented and good workers. Whimsical promotions to flatterer juniors superseding senior good workers are very common in our country.

As long as we are unable to provide a reasoning based transfer and merit based promotion and as long as the wrong doers are not punished by courts in the country in the quickest timeframe we cannot imagine of stopping corrupt practices prevailing and spreading like cancer in the society. 

When most of the ministers in the government, most of the MPs and most of the MLAs at state level are corrupt how can they inculcate good practices among IAS officers, judges, other functional heads and subordinate staffs? When person like Madhu Koda or Lalu Yadav or Mayawati become head of a state, corrupt officers will get powerful and cream posting whereas on the contrary good and honest officers working in the administration will be shunted away, deprived of promotion and placed at non-effective dormant posts. One can imagine the fate of the state in such position when the head is the most corrupt

I have experienced when the top in any office or in the government is weak and corrupt, the bottom-line is bound to be corrupt, inefficient and dishonest. 

Old proverb “survival for the fittest” no more holds good. Now a day’s survival is possible only for the person who is well versed in flattery to bosses, who can earn money through ill methods and share the same with his bosses. As such it is not astonishing that corrupt persons are placed at top posts including at the post of justice and chief justice of a high court or Supreme Court.

The bitter truth is that there is no foolproof method of providing perfectly merit-based promotion or seniority based promotion in any office. None of the promotion processes can ensure justice to all, justice to the organization and discomfort to none as long as the person responsible for carrying out the promotion process is dishonest and corrupt. When protectors become destructors, damage to society cannot be stopped, the great writer Munsi Prem Chand wrote in his book.

I have been advocating abolishing Interview panel in all promotion processes in all departments and in all organizations because Interview is such a test where Interviewers can easily spoil the candidate’s career. During interview, key role is played by elements like bribe, gift, sources, godfathers, and flattery possessed by employee whose performance is assessed during interview. When Interviewer desires to promote an employee he raises easy questions and on the contrary he may raises toughest and irrelevant questions before the candidate to reject him in the promotion process. The interviewer as per his whims and fancies gives marks for interview and unfortunately there is no method to penalize such malicious interviewers or the interview team made of birds of the same feather. There is hardly any place for merit in the mind of Interview panel and this why whimsical promotions take place and a reign of injustice and that of corruption spreads like cancer and is followed by inefficiency, frustration, depression and what not.