Deliberate delay in action against NPAs-Times of India-7th June 2014
NEW DELHI: In at least two major criminal investigations into bank loan defaults there is an unusual delay in sanction for prosecuting officials responsible for sanctioning the loans, running into a few thousand crores in total.
The delay is unusual given the grave concern about mounting NPAs of Indian PSU banks. According to estimates, gross NPAs could touch Rs 2.50 lakh crore, and RBI had in December warned that bad loans could be as much as seven percent of total advances by March 2015.
According to sources, the CBI is awaiting since November 2013 sanction to prosecute a senior official of the IDBI who is among those who are allegedly involved in the criminal conspiracy to award Rs 1100 crore to Gujarat-based Biotor Industries. The castor oil manufacturer had taken the loan from a consortium led by SBI for contract farming, but the money never reached small farmers as was promised. And the company defaulted.
The delay is unusual given the grave concern about mounting NPAs of Indian PSU banks. According to estimates, gross NPAs could touch Rs 2.50 lakh crore, and RBI had in December warned that bad loans could be as much as seven percent of total advances by March 2015.
According to sources, the CBI is awaiting since November 2013 sanction to prosecute a senior official of the IDBI who is among those who are allegedly involved in the criminal conspiracy to award Rs 1100 crore to Gujarat-based Biotor Industries. The castor oil manufacturer had taken the loan from a consortium led by SBI for contract farming, but the money never reached small farmers as was promised. And the company defaulted.
The CBI filed 14 FIRs in the case between June 2012 and March 2013. And by November 2013 it had completed investigations against the officer concerned. Despite repeated requests from CBI and Central Vigilance Commission reminding the Department of Financial Services that looks after the sector, the sanction is yet to come. Sources said the delay was unusual, but not isolated in the case of criminal investigations into loan defaults.
In the case of Mahua Media, which launched country's first Bhojpuri news channel and which has a total of Rs 2700 crore loans, the sanction to prosecute is yet to come. The undue delay led to the trial court judge expressing displeasure recently and asking the government to expedite sanction to prosecute bank officials involved. Three officials of Punjab National Bank are key accused in the Mahua case.
The CBI is now investigating a total of 27 cases against nine companies for loan defaults. CBI's bank securities and fraud cell is also investigating loan defaults of other companies such as Rajat Pharma, Deccan Chronicle Holdings, Pixion Media, and Zoom Developers.
In the case of Mahua Media, which launched country's first Bhojpuri news channel and which has a total of Rs 2700 crore loans, the sanction to prosecute is yet to come. The undue delay led to the trial court judge expressing displeasure recently and asking the government to expedite sanction to prosecute bank officials involved. Three officials of Punjab National Bank are key accused in the Mahua case.
The CBI is now investigating a total of 27 cases against nine companies for loan defaults. CBI's bank securities and fraud cell is also investigating loan defaults of other companies such as Rajat Pharma, Deccan Chronicle Holdings, Pixion Media, and Zoom Developers.
Link times of India
Spell out action taken in NPA scam: Bombay high court to CBI-DNA
PIL has accused RBI and nationalised banks of suppressing info on bad loans, which stood at Rs9,190 crore in 2011-12, to shield fraudsters
The Bombay high court has asked the Central Bureau of Investigation (CBI) as to what action it has taken in 140 cases of alleged frauds registered by the Reserve Bank of India (RBI) with regard to bad loans of nationalized banks that stood at Rs 9,190 crore in financial year 2011-12.
A division bench of justices PV Hardas and Ajey Gadkari gave the direction while hearing a public interest litigation filed by former journalist Ketan Tirodkar, seeking CBI probe into the non-performing assets scam. The petition also prays that the RBI should be directed to inform the court about the NPA scenario.
The petitioner has alleged that RBI and the nationalised banks do not comply with the Banking Regulation Act, 1969, which mandates periodical submission of audit reports to the RBI. The same is not complied with in order to suppress the NPA scenario and shield the culprit beneficiaries working in collusion with the banking authorities, alleges the petition.
According to information obtained by Tirodkar under the RTI, the NPAs of nationalized banks were Rs 455 crore ending March 2008. It swelled to Rs 9,190 crore as on March 31, 2012. The petition states that over 140 bank fraud cases of nearly Rs 15 crore each were reported to the CBI by various banks between 2008 and 2012.
"Recently the United Bank of India's chairperson and managing director, Archana Bhargava, resigned citing personal reasons. At that time,the gross NPA of the bank was Rs 8,545 crore, which was 10.82 per cent of its gross advances, and net NPA was Rs 5,630 crore or 7.44 per cent of the net advances."
Also the Sharada Chit Fund of the State Bank of India created NPAs of hundreds of crores with the bank which have not been reported to the RBI as mandated under the Banking Regulations Act, 1969.
The Central Vigilance Committee Rules state that the CBI has to be informed of any case of fraud which is more than Rs 50 crore. In a case where the amount exceeds Rs 100 crore, an FIR has to be registered.
The HC has kept the petition for hearing next week.
No comments:
Post a Comment