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  • Category: Central Government

    Is it possible for Mallya or Nirav to hide in other countries, if the loans were from private banks?

    BOC Aviation of Singapore made UK courts to award $90 million to it in a case against Vijay Mallya. But Indian Government is not able to do anything even though he owes crores of money to the Public Sector Banks. Same is going to happen with Nirav Modi also. Are the rules coming in the way only for the Governments? If an aviation company can do something, why our Government is doing nothing? Had these culprits taken this much amount of loan from private banks, would the private sector banks leave them so easily? Government is making dis-investments in profit making PSUs and making re-investments in loss making PSBs. What a pity situation!
  • #626664
    Bhushan, you are right on the target. Instead of Modi, use Nirav Modi which will look better. These culprits cannot leave the country conveniently before the scam broke out, without the connivance of the higher-ups. The last two sentences of the content make a lot of sense.
    " Be Good and Do Good "

  • #626672
    KVRR sir, my name is Bhuvan and not Bhushan. Probably because our fellow member, Mr. Bhushan is more active in forum, you got acquainted with his name.
    I am not able to modify it to Nirav Modi because of word limit in the title.

    (Corrected- Editor)

  • #626673
    First of all, a private bank will never give loans to the people without getting proper security. Because they work with a motive of making some profit. There the senior employees can't do any malpractice without the consent of the Board of Directors. But the Board can show the loss and eat away the money of the people who are keeping the money there. There a different threat. One thing is sure in any bank the safety of a common man's money is at risk. He will be the suffer and he will continue to suffer. Mallya or Nirav Modi will be safe always. As long as the politicians and the senior officers in the banking sector don't behave properly this problem will continue. A private company can never leave the people but the big bosses in the private companies can make a lot of money in a different way.
    always confident

  • #626674
    Private banks also give personal loan without security/collateral. However, the private banks operating in India don't have the ability to give a loan to the amount of Rs. 11000 crores.
    Beware! I question everything and everybody.

  • #626679
    Both HDFC and ICICI banks are bigger than PNB but they won't give Rs. 11000 crores to a single person even if they together are capable of giving that much amount of loan. This is because private banks work with sense.

  • #626681
    Bhuvan, I mistook you for Bhushan. Sorry for the mistake. My comments about the thread remain the same.
    " Be Good and Do Good "

  • #626682
    It is really a surprising thing that people are doing frauds of such high magnitude and going out of the country before the fraud is caught by the Govt.

    Once they go out there is a long process to get them extradited from that country. It is also surprising why that country is extending his VISA or allowing him to remain in that country if he has committed such a fraud.

    Another problem in such cases is to recover the money as the assets of that person are far less then the fraud amount. We can at the most send him to jail. But how to recover the money? This is a question yet to be answered in similar cases.

    Knowledge is power.

  • #626686
    The main aim of nationalisation of banks was to involve common man in the economic activities of the country and thereby sharing the profit with the people. After nationalisation, these banks came under the politicians rather than their old managements of individuals. Over a period of time these went in the hands of top bureaucrats and their nexus with businessmen made nationalised banks a sort of bastion for the businessmen. When elections became a money game there developed a nexus of businessmen and politicians. Now the bureaucrats, businessmen and politicians started looting banks and common man was altogether out of the banking system accept depositing his hard earned money for meagre interest rates.

    Private banks strictly follow all norms for safe lending and recovery of money. They work for profit and not for targets set by the government for the political advantage. Whatever government may come to power, it will not allow much of profitability or transparency in the nationalised banking sector and such incidences as mentioned in the thread will continue to happen.

  • #626687
    Such mega frauds become sensational headlines and stay alive in the eyes of the media and the public. The official machinery stays quiet or remains ineffective because of the 'Domino effect'. If one piece falls, then it sets a chain reaction.

    Once authorities start aggressively chasing the main culprit, then other names start to come out and the stink raises up to a high level that would involve very senior directors, influential people and people in power. This is a huge risk rather than an embarrassment to the Government.

    If you see any big scams,it stays suspeneded and slowly fades away because of the collateral damage such big scams can do.

    The other issues would be the legal status and influence wielded by a country, for instance, we need to have an extradition treaty, we need to ensure that all the rights for these criminals are honored so that we don't upset the basic human rights etc.

  • #626688
    When ever the fraudsters smell the action, the fly to other countries with the connivance of bank officials passing information and officials at the airport see that they fly off. This has been happening many number of times. And most of the culprits stay in UK which is the heaven for the wrong people but in the case of Neerav Modi, the government acted fast by raiding the premises and confiscating assets worth 6000 crores so far. And his pass port has been impounded. As per reliable source he is hiding in a posh hotel in America and soon he will be brought to India after arresting..
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #626726
    In a very recent interview, Mr. Dinesh Dubey, a former Director of the Allahabad Bank, has said: "I had sent a dissent note against Gitanjali Gems to the government and the RBI in 2013 but to no avail, I was directed that this loan has to be approved, I was being pressured so I resigned."

    Every day, new information is coming out.

    Beware! I question everything and everybody.

  • #626755
    Big money means big involvement.
    As a former bank employee, I cannot believe what is put out in the media. No small employee will be able to do such big fraud so covertly. Lower level officials do not have large discretion at all.
    What I feel is there is basically a systemic deficiency in the concerned bank. I also do not believe that the loss is so huge. When the concerned bank is called for compensating other bank, they would have got alerted.The loss cannot happen overnight. Either the systems and alerts were deliberately ignored o r the concerned bank has thrown all caution to winds. That is of a very serious matter then.

    What happened may be a sort of 'kite flying' .As far as no one disturbs the chain, it goes on well. The moment someone puts a break somewhere the whole thing collapses.

    I cannot believe that such huge amounts will be overlooked or go unnoticed by any one of so many types of audits. Sure there could have been some whistle blowing and could have been suppressed. The root may be somewhere or something else. Extra involvement with internal and external support can be doubted. The bank press meet was so vague and left many doubts.

    Now, coming to private sector banks,there are two points. 1. They are not so transparent , and simply wipe of such things without making it public. They may absorb it from the provisions. They can do because the profit they make is huge and is with them only.(2) They use many other tactic to recover their money. So usually not all dare to default with private sector(te new generation)banks.

    However even private sector banks are not immune to defaults and frauds. Many cases are there form their side also n the courts.

  • #626829
    One of the news coming is, that CBI filed FIR on Nirav Modi on 31st January, eight Letters of Undertaking (LoUs) given all of which were issued after 2017 were in the NDA's regime. Here is the list of LOU's given by Financing Banks :-
    After seeing all these every citizen of India feel shamed to see how the government, RBI, Bank personnel, security system sleeping allowing the fraudulent to escape the country so easily and mixing with National and International Officials so conveniently.

  • #626831
    In March 2015, the Supreme Court of India has stated that the total dues from Sahara India Pariwar have gone up to Rs 40,000 crore with the accretion of interest. Thus the Sahara scam can be said to be bigger in size though it involves private sector, not the much maligned public sector.
    Its chief Subrata Roy was sent to jail in March, 2014 and now he is on parole since May, 2016.

    I think, any scam like PNB scam in a private sector bank, is likely to result in arrest and prosecution of the bank officials themselves influenced by the powerful persons protecting the scammers in lieu of cartain favours. Such scammers also can flee the country in case they have right (or wrong) connections.

    Let us encourage each other in sharing knowledge.

  • #626840
    SBI has quoted that although they have no direct dealings with Nirav Modi, via the letter of undertaking, SBI has a 1360 crore exposure. I'm mentioning this because the huge amount of the scam is difficult to be kept under wraps in one bank, it would spill to a few other banks via the LoUs and not a direct transfer of funds.

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