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Public Sector Bank Scams. PSBs Fraud by Bank Babus


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.
Central Bureau of Innvestigation Sign Board
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.
 
Scam Alert Pictoral Symbol
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. 
 
Pitoral Representation of Thumb down
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: PNB Scam


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