Bank Fraud in India- Courtesy: Public Sector Bank babus
As per reports from the media officials and the fourth pillar of
the Indian democracy, public sector banks (PSBs) actually lost out on
approximately a whopping amount of INR 227.43 billion. This was all lost to
frauds that took place from the year 2012 to the year 2016. For those who are
living under a rock and are totally unaware of what is happening in their
nation and especially on the economic and financial front, Ravi Shankar Prasad,
(the national minister of electronics and information-technology), stated
before the parliament that banking frauds had gone up to a cash total of INR
1.79 billion. This was done by quoting the Reserve Bank of India in December,
2017. The Reserve Bank of India. Or as it referred to, RBI, is the central bank
of the nation and is charged with the responsibility of supervising other banks
in the country as well ensure money production and its efficient and effective
use.
In fact, the number of fraud cases has also been clearly mentioned and it
is nothing less than 25,600 in number, to be price.
Reports that have been released by the Reserve Bank of
India in March last year, employees of national banks were involved in their
fraud cases. Without their help and support, this would not have been possible.
While investigation regrading them is still going on, it comes as a major shock
the masses who trust these officials with their heard earned money.
In fact, it
is the money of the people in the bank that these officials slyly give away as
loans to even richer people without any guarantees. In such a situation, the
common man feels helpless and does not who to trust.
India is a nation where
these widespread and rapidly increasing poverty and unemployment. Mass scale
social problems like these have been the key influencers that have stopped the
nation from progressing and being able to move ahead.
Some banks that have been
actively involved in such cases are the State Bank of India, the HDFC Bank and
the Axis Bank. Keep reading ahead to find a timeline of the investigations and
how the scene actually unfolded.
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| CBI is there still so much Corruption, pus this Agency's in Dock for its Roles in such Corruption |
2011: In 2011, the CBI came to know that some key
officials who enjoyed top positions in the banks, were trying to mess up the
system. This is because they had crated fake or fictitious accounts and had
transferred money to them. Thus, the question arose about ethics in the first
place because it is illegal to create imaginary accounts.
Also, this meant that
there were not some but several involved in this nerve wrecking and extremely
well crafter scam.
The banks that were named were the Bank of Maharashtra, the
Central Bank, the Oriental Bank of Commerce and the IDBI.
In fact, the number
of these accounts, was a massive number, that is, 10,000. Also, the loan sum
was INR 1.5 billion.
2014: This was year when the Mumbai police filed
nothing less than 9 reports against a number of public sector banks and their
officials. This was done with regard to a fraud that pertained to fixed
deposit.
The sum was a huge amount of INR 7 billion. It was found out that the
company, functioning by the name of Electrotherm India had cheated the central
bank of India and their sum was over INR 4.36 billion.
Another case in the same
ear emerged when an industrialist from Kolkata, Bipin Vohra had cheated the
same bank. He had actually created fake documents and been able to successfully
procure a loan of INR 1.4 billion.
Lastly, there was also the incident which
involved S K Jain. He was the ex-chairman and MD of Syndicate Bank, who had
allegedly been part of a scam where INR 80 billion was used to get loans.
2015: The two biggest scams of this year was first
when Jain Infraprojects had committed a fraud of INR 2.12
billion at the Central Bank of India and second, when a dummy Hong Kong company
was involved.
2016: This was the year when merely four people had
been able to successfully create 386 bank accounts.
The bank on their target
was the Syndicate Bank. While the fraud sum had amounted to INR 10 billion,
they had also made use of forged letters of credit and LIC policies.
2017: 5 big cases came to light this year. The most
shocking one was when CBI had filed charges against 5 public sector banks and
six charge sheets against Deccan Chronicle Holdings because they had led to a
loss of INR 11.61 billion.
2018: Lastly, in this present year, the Enforcement
Directorate arrested the initial Andhra Bank director, under charges of a fraud
case involving INR 5 billion.
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| Need to Punish Corrupt bank babus as India has become synonymous to Corruption |
What is the Deccan Chronicle Holdings case?
According to reports, the Enforcement Directorate has
come to the conclusion that the Deccan Chronicle Holdings Limited has been
involved with a fraud case pertaining to a bank loan. The Hyderabad bank has
been stated to led to a loss of a total of INR 1161.93 crores to six other
banks that function in the public sector. Their assets such as lands,
residential properties, shares, foreign exchange and cars have been attached to
this attempt to recover what has been lost.
The bank balance is also a major
contributor in this respect. The six other banks of the public sector that have
been on the suffering end are the Canara Bank, the Andhra Bank, the Indian
Overseas Bank (IOB), the Central Bank of India, the Corporate Bank and the IDBI
Bank.
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| Indian Bank babus giving Bad name to their nation, but who of them bothers? |
The case came to light when a case had been
filed against the Deccan Chronicle Holdings Limited
(DCHL) with regard to the loss of a sum of INR 357.77 crore to the Canara Bank.
Conclusion
When
the matter was investigated by the Enforcement Directorate, it was found out that the company had
taken loans under the pretext of working capital, buying of capital goods as
well as short term loans. Last but not the least, it had also understated the
liabilities.
Review based on Overall Media information.
See also:
Ponzi Scam
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