Bank of Baroda Scam
What is Bank of Baroda scam?
A duo of a
father and son were arrested by the Enforcement Directorate because of a money
laundering case in Bank of Baroda which is estimated to be a sum of Rs. 6,000
crores. Their names are Manmohan Singh Sehgal and Gagandeep Singh Sehgal. They
were taken into custody on the grounds of Prevention of Money Laundering Act
(PMLA). They have been charged with the case that they were illegally routing
approximately 245 crores as funds to enterprises and organizations that are
based in Hong Kong, China. The medium to do this successfully has been the use
of shell companies.
Reportedly,
the father and son had used a very strategic approach in proceeding with their
plan of action. They had hired two other people who had opened accounts in the
Bank of Baroda, Ashok Vihar branch of Delhi. This was done under fake identity
and they claimed to have no financial worth. All the documents that were
produced before the bank officials to get the transactions done effectively
were also fake. However, the bank officials failed to smell something fishy.
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| Bank of Baroda Scam |
In terms of
dollars, the total amount comes to $37,826,899, that is 245 crores in INR. The
main question that is also hitting the minds of the masses is that how then
leaders can claim that our nation is poor when we actually lose so much to
frauds under the disguise of loan. Also, such incidents create havoc in the
minds of the public and they lose out all their faith and trust when it comes
to the hands in which their life savings are. Although the companies abroad did
not really send across any goods, it is being understood clearly that this step
was taken to save up on the import duties.
You would be
surprised to know that this is not the first arrest that is taking place with
regard to this Bank of Baroda scam. Including the arrest of this duo, a total
of 9 arrests have been made so far with regard to this case. It has actually
been under scrutiny since the past year, that is 2017. Trade based money
laundering has been on the rise because companies find it easy to make their
way and get things the way they wish to.
But, it is
obvious that this duo could not have done this totally on their own. That is
why, the intelligence department has been able to put two and two together to
make four. This means that they have also arrested the Bank of Baroda AGM S K
Garg along with the head of the foreign exchange division, Jainish Dubey. They
have been charged with an addition of corruption charges and shall be dealt
with in a separate case.
Penalty charges on the Bank of Baroda
Recently,
news came that the Bank of Baroda has been charged with a penalty of nothing
less than a whopping 9 crore rupees. This was done by the Financial
Intelligence Unit. This was done because the Bank of Baroda failed to adhere to
norms that were pertaining to anti-money laundering. All this simply followed
the scam of the bank where they lost out on a loan that they had given out,
which was of Rs. 6,000 crores. The section under which this action has been
taken is the Prevention of Money Laundering Act (PMLA).
BoB Scam
Central
bodies which are charged with the responsibility of gathering intelligence
regarding money matters and the finance minister of the nation have the power
that if they feel certain banks are unable to meet the ground rules laid down
by law, then they can impose penalties on the banks and other such
organizations.
Money laundering needs to be reported and any such suspicious
acts also need to be stated. However, failure to do implies that you are linked
to it and that is the basis on which this step has been levied.
It is being
said that at least five times have already been in count when the Bank of
Baroda has failed in being able to detect and understand that a fraud is
brewing up at their Ashok Vihar branch in India’s national capital, the
bustling city of Delhi. Years of investigation have been going on but all of it
has been of no avail to be able to put an end to this crime at this bank. What
is also surprising is that Bank of Baroda is one of the largest public-sector
banks that is operating actively in this nation and so many accounts have been
opened in this bank.
Bank of Baroda Fraud
The Bank of
Baroda has also been held guilty for not being able to successfully file 63
cash transactions that were connected to one another in seven of their
accounts. To let the bank, know about this penalty that had been slapped on
them, an order of around 48 pages was prepared which had all the necessary
details regarding the case, the accusations and the deadline within which they
were required to pay the money on rounds of penalty.In fact, there are several
other reasons as well as to why such a drastic step had to be taken by the
Financial Intelligence Unit.
Bank of Baroda Lacking
These include
the failure to possess an efficient internal system that would be able to
report and sent 8,962 alerts, inability to understand and make complaints
regarding suspicious transactions, lack of success in carrying out proper
customer care and delayed filing of approximately more than 8000 electronic
transfer of funds. Well, it seems that the Bank of Baroda has a lot of
explaining to do not just before the authorities but also to the masses. After
all, the public has trusted them with their hard earned money and any such case
can have a direct impact on the common man’s account which he actually runs by
working dedicatedly all day.
Other Top banking scams of India
·
2011: It was found out that workers from particular
banking organizations such as the Bank of Maharashtra, the Oriental Bank of
Commerce and the IDBI had been able to successful make almost 10,000 fake
accounts. In fact, loans of approximately Rs. 1,500 crores had been
transferred.
·
2014: Though there were many scams reported in this
year, the biggest one was of Vijay Mallya. It was declared that he was a defaulter.
And, the worst fart was that several banks had this claim.
·
2015: The scam in this year included workers of Jain
Infraprojects. They had been able to commit fraud at the Central Bank of India
and the sum they had dealt with was over Rs. 2 billion. This was also the year
when people from a number of other banks were found to be the part of a foreign
exchange scam. This was with regard to a firm in Hong Kong. Approximately 60
billion rupees was involved again.
·
2016: You would be surprise to know that the top
banking scam of India for the year 2016 was related to the Syndicate Bank.
Reportedly, just 4 people had managed to open 380 new accounts. In fact, they
had use fake cheques and insurance policies to churn out
Rs. 10 billion from the bank.
·
2017: As stated earlier, Vijay Mallya had been
declared a defaulter in 2014. In 2017, he had to return Rs. 9,500 crores to
IDBI and other banks that he had taken as loan for his Kingfisher Airlines
which had suffered severe losses. However, he refused to pay up and in turn
fled to the United Kingdom to seek shelter.
-Secondly,
Winsome Diamonds also came under the scanner when the CBI charged six cases
against them. Their total debt has amounted to almost INR 7,000 crores.
-Third in
this year, Deccan Chronicle Holdings had causes a loss of INR 11.61 billion.
-Next, Nilesh
Parekh, a businessman based in Kolkata was arrested due to charges of taking
INR 22.23 billion from around 20 banks at least.
·
2018: Diamond merchant Nirav Modi left the nation
shocked when his loans from the Punjab National Bank came to light. In fact,
there are also reports that besides this one firm, several other banks have
also been at the suffering end because of giving loans to him. Fraud LoUs has been
reused by merchant and then issues to other banks illegally. Though he too fled
from the country, he is presently in the United States of America according to
news channels and sources.
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| BoB babus took Public Money Away |
Tags: Bank of Baroda Scam, Vijay Mallya, Nirav Modi, Mehul Choksi, Manmohan Singh Sehgal, Gagandeep Singh Sehgal
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