Why India is just not prepared to handle coastal disasters

The Indian maritime authorities can only wait and watch and hope that the tide washes away the aftermath of the recent collision off the Mumbai coast

A basic study and understanding of international law is part of the immense syllabus that a mariner has to undergo before he can hope to become even the 2nd or 3rd in command on a ship. This is further honed by the strict way in which the authorities, especially of late in developed countries, expect ships and people working on them to know as well as adhere to the laws. Especially those laws pertaining to eventualities which impact the environment - a subject that results in liabilities running into hundreds of millions of dollars.
 
It is obvious that these administrations have to be on the ball before the incident, to not just be ready to counter the effects, but also to ensure that they can collect. Otherwise, it is only so much hot air, while ship-owners and their insurers get away without paying much thanks to the proverbial "fine print". And arresting the crew of a ship, or seizing a ship which is already damaged or a wreck, is not going to help.
 
It is therefore indeed very amazing to hear people talk about arresting a captain and getting the ship-owner to pay and by further assumption implying that the insurers will be by some magic made to pay for the cost of the post-incident activity including the cleanup, in the midst of the rest of the reportage on the MSC Chitra /MV Khalijia III incident outside Mumbai, as though it were a simple case of collecting from the owner or his insurers, and then settling the bills. If only things were that simple. And if only governance as we know it in India was more on the ball as far as a variety of international treaties and conventions were concerned.
 
For example, India is still not a signatory to the International Convention on Wreck Removal, 2007, for reasons best known to the administration. This itself puts the Indian administration on the back-foot from the outset itself. And it is not as though this has not happened before, or the urgency is lost on them, the Indian coast is dotted with wrecks rotting away, slowly polluting everything in sight, and becoming a danger to every other user. Just that this time it happened right off south Mumbai.
 
For those who want to read up more on this subject, this commentary appended below is very apt and interesting, but a short question here is this - why does the Indian maritime administration permit such overage ships in Indian territorial waters without specific separate and pre-verified insurance cover taken out in advance, regardless?
 
(See: http://admiraltylawkochi.blogspot.com/2007/09/law-relating-to-maritime-wrecks-in.html).
 
The regardless comes into play here because any insurer worth his or her salt will soon try to prove first of all for a variety of reasons that the ships were not seaworthy at the time of the collision. This is reasonably easy to do for old ships. It still needs to be seen what sort of class and insurance MV Khalijia III had, since she had almost sunk about a month ago while off Mumbai, and it is still not clear when, how, why and by whom she was permitted to make an unescorted move into Mumbai Port.
 
Likewise, disturbing rumours are surfacing about the loading plan, stability as well as general preparedness for a monsoon sea voyage of the MSC Chitra, and whether full lashing as well as securing had been done prior to departure or not. Incidentally, this is also an elderly ship, having been stopped in New Zealand as well as Australia in the recent past - here again, why was she allowed into Indian ports without specific covers?
 
The first point here is to find out if both ships were seaworthy at the time of the incident in the legal sense of the word, or not, as simple as that. If it is proved that either or both of the ships were not technically seaworthy at the time of the incident, then the various insurance entities have got a right to simply refuse to provide cover.
 
That, apparently, is a real possibility if it turns out that MV Khalijia III was not seaworthy. Registered in the Flag of Convenience haven called St Kitts, it will not be easy to get anything from the "owners", as is always the case.
 
What are the various kinds of insurance payouts possible in an incident like this?
 
An indicative list, certainly not comprehensive as we go to press, and very subjective since all owners and insurers have their own terms and conditions, would look like this, and all assuming that claims and counter-claims would be settled basis judgements from the Admiralty Courts in Mumbai, allowing a while to work things out. Please also note that every payment would take place via a complicated route of a vast variety of claimants and counter-claimants including charterers, banks, shippers, consignees, those with any sort of a lien on the ship and everything on board, unpaid suppliers, and so on and so forth.
 
The ship-owner's Hull and Machinery Insurance would cover the cost of the ship as a total constructive loss, via a complicated route of charterers, banks, those with any sort of a lien on the ship and everything on board, including crew, unpaid suppliers, and so on and so forth.
 
The P&I Club, (Protection and Indemnity Club) would cover the claim on the cargo damage or loss, as well as some part of the environmental damage caused by the ships. It would also cover baggage, health, personal effects and other claims from the crew members, whose wages, incidentally, stopped the moment the ship was abandoned.
 
Freight is deemed earned by the ship, cargo delivered or not, so somebody will have to pay that to the ship-owner. In most cases, that would be the shipper/consignee's insurers, if not, counter claims on the shipper/consignee.
 
Now we come to the big bucks - and you can already spot the greens as well as the politicians salivating - the cleanup for environmental pollution. Thanks to being a signatory and participant in good order to the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, India has access to vast amounts of funds here. However, putting it bluntly, the "fund" works in a very commercial manner, and low claims by the Indian government can certainly be compensated by benefits to individuals.
 
It will be very interesting to track this and see how much the Indian government does claim from this fund. The simple fact that the government was just not ready to fight the pollution caused is itself reason enough for the fund not to pay. Now do we understand the real reason why there is a delay in setting up the mechanism to counter such pollution?
 
Traditionally, the developed countries claim and get compensated a lot, in oil-pollution cases - whether cargo or bunkers. That's because they have kept the resources ready for such eventualities - which the fund will pay for, anyways.
 
Developing countries, on the other hand, claim lower. People who follow will understand. Briefly - it appears as though developing countries contribute to the fund so that developed countries can claim. It is a lovely arrangement for all except those who got hit in the developing countries if you look at it through the prism of the realities involved.
 
Another area where the administration can claim and get paid a lot under a variety of international conventions and treaties, too many to be mentioned in a short article, would be claims pertaining to loss of business for the ports, hotels, tourism industry, urban and rural sufferers - made by the administrations on behalf of such categories. This is another segment where the fiddles are expected to take place by those claiming to represent the affected - the procedures for individual claimants are too complex and rigorous, even for the best of us. Once again, see the greens snarl at everybody else in public, while behind the scenes the claims are worked on. Bhopal was nothing compared to the numbers expected in such cases - especially if it involved oil tankers.
 
Then there will be the more interesting claims from the ships which have been delayed due to the port being shut down. They will claim this from, yes, you got it right, the government of India as well as the port authorities. Who will pay this?
 
This list goes on, but the root cause for this remains the same - the Indian maritime administrations refusal to severely handle the issue of old and unsafe ships from heading for Indian ports and territorial waters is now an issue which cannot be left unresolved.
 
The problem here, however, is this - letting them in and then working the benefits of such incidents, is now a money-spinner for all. So why bother? Let the rust buckets and derelicts keep heading for Indian ports, then stand in the wings, say the correct things on television -  and then collect.

User

COMMENTS

JJ

6 years ago

INDIA IS NOT PREPARED TO HANDLE ANY KIND OF DISASTER - (26/11, CYCLONES IN DOZENS, EARTHQUAKES, TERORISTS, NAXALITES & MANY MANY MORE MAN-MADE & NATURAL DISASTERS)!

WHY? BECAUSE INDIA ITSELF IS A BIG DISASTER IN MANY WAYS FOR ITS RESIDENTS!

Shivkumar

6 years ago

Auhtor is under a mistaken belief that India is not equipped to handle such disasters. In fact, India is equipped to handle all types of disasters, particularly man made disasters. Is India not handling Common wealth Games disaster, then there is the Kashmir disaster and are the so called political leaders any less than a disaster. Yes, the vicitms invariably are the poor citizens.

REPLY

V Malik

In Reply to Shivkumar 6 years ago

Thank you, Shivakumar ji, but author is of the humble opinion that the citizen is now equipped more than ever before to challenge the authorities who do not respond properly to disasters.

If not in this life, then when?

rgds/VM

shivkumar

In Reply to V Malik 6 years ago

Sirjee, easier said then done. Whistleblowers get blown off. How many people are willing to stick their neck out and pay the price. Sorry to say but most of us have become too soft and insensitive. Yes, those who have the guts and the commitment are fighting on and I salute all such persons.

andrey

6 years ago

A lot of poor-trained officers and support crews from asian countries are hired and embarked on bord of merchant ships for one reason only, they are the chippest on market.

REPLY

V Malik

In Reply to andrey 6 years ago

Thank you, Andrey ji, and you are correct to a large extent.

rgds/VM

India, Egypt trade touch $3 billion

Cairo: Indian and Egyptian trade ties have continued to grow despite the global financial crisis, with bilateral trade hitting a $3 billion figure last year, reports PTI quoting Indian ambassador to Egypt R Swaminatan.

At a press briefing to mark the Indian Independence Day, Mr Swaminatan hailed the historic relations between Egypt and India and referred to them as "two champions among the developing world and leader countries in their respective regions".

Citing the achievements India had made in the 63 years of independence, the ambassador noted the recent launch of four Indian satellites from the Poly Satellite Launching Vehicle (PSLV), and also referred to the $35 laptop developed.

The ambassador said expectations were for the price of laptop to reach ten dollars.

He said the financial crisis had "a major effect" but India was able to sustain a 7.2% growth that reached 8.6% during the last quarter.

The ambassador noted that the target growth this year is 8% and 9% the next and for India to become the fastest growing economy within four years.

He also referred to the ongoing preparations for a visit to Egypt by top Indian officials-the external affairs minister who is expected to visit Egypt in September for talks with his Egyptian counterpart, the speaker of the Parliament, the minister of urban development and the minister of state for industry and trade.

Egyptian minister of oil Sameh Fahmi and minister of electricity and energy Hassan Yunis will pay a visit to India as well, he added.

Despite the fallout from the global financial crunch, trade between Egypt and India hit $3 billion last year, while Indian investments in Egypt reached $2billion, the ambassador said, pointing out that 44 Indian companies were operating in Egypt.

An Indian company plans to establish a factory in Port Said to manufacture PVC, which is used in pipelines and tanks with investments amounting to $1.3 billion, he said.

He pointed out that 45 Egyptian employees received training courses in India last year in various fields, adding that the number is expected to reach around 70 this year.

He voiced belief that inaccurate media reports have not affected the export of Indian meat to Egypt asserting the fact that his government exerts utmost efforts to present high quality commodities at suitable prices.

Touching on the issue of co-operation between Egypt and India in the nuclear energy domain, he said, the visit to India by Mr Fahmi and Mr Yunis aimed at probing cooperation in the fields of energy and oil in general and not nuclear energy in particular.

However, India is ready to discuss co-operation with Egypt in field of peaceful use of nuclear energy, he added.
 

User

RBI moots discussion on new banking licences

Mumbai: The Reserve Bank of India (RBI) today brought out a discussion paper on giving out new banking licenses to business houses and non-banking finance companies, and regulations for the same to foster greater competition, reports PTI.

"The Reserve Bank is considering providing licenses to a limited number of new banks. A larger number of banks would foster greater competition, and thereby reduce costs and improve the quality of service," the central bank said in a discussion paper.

The RBI also sought to know "whether industrial and business houses could be allowed to promote banks." And, should NBFCs be allowed to convert into or promote banks.

The central bank sought feedback on this as also business model for the new banks by 30th September.

It was of the view that greater competition would also promote financial inclusion.

Currently, India has 27 public sector banks, seven new private sector banks, 15 old private sector banks, 31 foreign banks, 86 regional rural banks, 4 local area banks, 1721 urban co-operative banks, 31 state cooperative banks, and 371 district central co-operative banks.

RBI said the new licenses are required since vast segments of population, especially underprivileged, have still no access to formal banking services.

The discussion paper outlines various pros and cons for norms like minimum capital requirements for new banks, promoters' contribution, caps on promoters' shareholding and other shareholders, foreign shareholding.

Various entities like Reliance Capital, Indiabulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services are reported to be mulling entering the banking space.

User

COMMENTS

Vaibhav kumar

6 years ago

These private sector bank is harasshing thier junior emplyee.Responsable for evry fraud is junior emplyee who works for bank on front.What is the responsiblity of managment.I think his work only SHARE THE BIG PROFIT.

Private Bank Employees

6 years ago

Attn. Axis Bank Employees of Jabalpur / Indore / Bhopal / Gwalior / Nashik / Nagpur / Pune / Pune ATM Cell & Other Branches

We understand that sincere employees are forced by the Axis Bank management to contribute the amount in order to adjust the frauds. We also understand that the bank has done the one time settlement of Agri NPA accounts and the amount recovered from the farmers is much higher then the settlement shown in the books and the balance amount is adjusted by the zonal office functionaries like zonal head, zonal audit head and zonal compliance head, in order to close the various frauds without reporting to RBI.

So sincere employees be aware, if you are not involved in the fraud, then the management cannot force you to contribute money for adjusting the various frauds done by others. As an sincere bank employee we take a custodian oath at the time of joining the bank, that we will protect the depositors / investors money and hence hiding the frauds without reporting to regulatory authority is the biggest fraud and a financial crime of the senior management and the same can be backfired on the sincere employees. So don’t contribute any money and also don’t sign any papers blindly, and seek legal advice from your Advocate.

In case any sincere employee is a victim of the bank frauds, then BEIP Forum is ready to provide you the defense representative along with free legal aid services of drafting, counseling and educating the employees, while dealing with the management of the bank.

For more reports on the frauds, please click and read the link below.


http://www.patrika.com/news.aspx?id=4295...

http://www.patrika.com/news.aspx?id=4303...

http://www.tisriaankh.com/all.php?id=572

http://bollywood.bhaskar.com/article/MP-...

http://www.google.co.in/search?q=%E0%A4%...

You can contact the BEIP Forum officials on [email protected] or Mr. Sanjay Prabhu at Pune on 90294 96425 / Mr. Ernest Moraes at Margao, Goa on 94206 87137


Sanjay Prabhu
President - Private Bank Employees & Investors Protection Forum

SANJAY PRABHU

6 years ago

Income Tax Dept raids Axis Bank Jabalpur Branch for Fraud Account in the name of Narmada Vikas Pariyojna with 50 crores balances and opened without any KYC for more details click the following link or watch NDTV India Hindi News

http://www.naidunia.com/Details.aspx?id=...

SANJAY PRABU

6 years ago

Click the below link to read the comments of Parthasarathi Kumar

http://www.peerpower.com/et/1277/Grantin...

SANJAY PRABHU

6 years ago

Attention Suspended / Terminated Employees of Axis Bank

As all the employee and depositors are aware, how the Axis Bank Management has forced the branch employees to mis-sell various bank products such as Metlife Insurance, ( and now Max New York ) Bajaj Allianz General Insurance, Priority Banking Savings A/c & Channel1 Current A/c to all those poor customers and shopkeepers who cannot maintain those high end average balances and looted them by charging with complicated charge structure and the ultimate beneficiary of those charges are the Top Management and the Heads of Central Office & Zonal Office Departments, who got the large chunk of Variable Pay, Functional Pay, ESOP from 25000 to 200000 every year and also the Promotions in an unethical way.

As the Bank has withdrawn the powers of Branch Heads towards reversal of charges, the branches has adopted unethical practices to reverse those charges to customers such as increasing the DG Set fuel expenses, increasing the printing and stationery expenses, canceling the unclaimed DD and Pay Orders of customers etc, which was a serious frauds done by the employees in order to protect the interest of the depositors, as the management was not entertaining / responding to the mails sent by the branches towards reversal of charges.

The bank has no staff accountability concept since inception till 2009 and after my whistleblower they have discharged me from the services, and after that management starting dismissing the employees to show that they have been taking serious action. While taking those decision / actions, they have not even provided the defense representative to employees to defend the case and they have taken one sided decision, without going to the root cause of the frauds.

Now in order to bring it to the notice of general public and in order to decide the next course of action, all the suspended / terminated employees are requested to join the Private Bank Employees & Investors Protection Forum and make travel arrangement at their own cost to meet at Colaba, Mumbai on 29th August, 2010 along with the following documents.

a) Memo / Show cause notice issued by the bank and your reply to defend the case.
b) Copy of the minutes of the Personal Hearing signed by you and the inquiry officer of the bank
c) Charge sheet / Suspension Letter issued by the bank
d) Axis Bank Investigating Committee report
e) Termination Letter
f) Any other documentary proof to defend your case or to prove the unethical practices of the management are welcomed

Suspended / Terminated Employees, please note that if you have pocketed the money for personal benefits, then we will not be able to protect you, but if you have utilized those money towards reversal of charges, then yes we have all action plan to protect you and the investors interest.


Issued in Public Interest

Sanjay Prabhu – Pune

President - Private Bank Employees & Investors Protection Forum

Ex Discharged Employee & Share Holder of Axis Bank

[email protected] 95940 88588

REPLY

Vaibhav Kumar

In Reply to SANJAY PRABHU 6 years ago

Dear Sir,
We can say in these type of profit & fraud is done by junior employee.Management is only for sharing profit n also punish to junior staff.Its really a great law of INDIA

SANJAY PRABHU

6 years ago

Kashipur Axis Bank staff booked for Rs. 2.20 cr fraud

Dehradun, July 22 -- The entire staff of Kashipur branch of Axis Bank has been booked for defrauding about Rs. 2.20 reports from its 32 customers. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

According to reports, Executive of the bank used to visit nearby villages and convince many villagers to open a bank account. He collected money from the customers but did not deposit it in their account. In some cases he deposited the money but got issued bearer cheques and withdrew the money

In-charge of Kashipur police station said that so far 32 customers whose about Rs. 2.20 crore was fraudulently withdrawn by the bank staff approached the police. A case under Section 4209, 467, 475 and 120B has been registered against the entire staff. Efforts are being made to arrest the accused, he added.

Published by HT Syndication with permission from Pioneer. For any query with respect to this article or any other content requirement, please contact Editor at [email protected] crore. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

This is how the Axis Bank management is adopting the best practices in financial inclusion by looting the villagers and hence RBI should not allow entry of any new private sector bank. In Axis Bank the entire top management team including the departmental heads are corrupt and that is why the juniors are carrying forward the legacy of top management. Issued in Investors interest.

Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Respected Regulatory Authorities


Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail on

http://www.moneylife.in/article/8/8106.h....

With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feels more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”


Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% YoY basis to Branch Heads and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Derivative Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds under their able leadership and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.


After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.


By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the present regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank branch on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.


I see the future of India in villages i.e. category III to VI Branches and hence in order to capture the great potentials of growth in villages and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion, but keep in mind that we should not run the bank at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the various charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Banks failure on Corporate governance which is as under



“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are readily available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to Hyderabad and Axis Bank being the schedule commercial bank while dealing with huge investment of public money should have invited quotes for premises through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of Rs. 282 crores , plus the large chunk of brokerage shared between top officials at Rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.


Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems in next 5 years and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of Satyam, which is already happening by forging the balance sheet figures such as showing high CASA figures on quarter end, by disbursing large credits and reversing those entries on 3rd of next month, showing NPAs below the actual higher NPAs. As far Axis Bank is concerned they took a biggest hit in Retail Assets, SME & Agri Credit and they have shifted most of the top officials from SME & Agri Credit to other departments. The banks quote of 0.30 % NPAs is misleading the investors and RBI should conduct the probe in against the CFO of the bank


My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.


Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion.


Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Kashipur Axis Bank staff booked for Rs. 2.20 cr fraud

Dehradun, July 22 -- The entire staff of Kashipur branch of Axis Bank has been booked for defrauding about Rs. 2.20 crore. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

According to reports, the Business Development Executive of the bank used to visit nearby villages and convince many villagers to open a bank account. He collected money from the customers but did not deposit it in their account. In some cases he deposited the money but got issued bearer cheques and withdrew the money.

In-charge of Kashipur police station said that so far 32 customers whose about Rs. 2.20 crore was fraudulently withdrawn by the bank staff approached the police. A case under Section 4209, 467, 475 and 120B has been registered against the entire staff. Efforts are being made to arrest the accused, he added.

Published by HT Syndication with permission from Pioneer. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]

This is how the Axis Bank management is adopting the best practices in financial inclusion by looting the villagers and hence RBI should not allow any new private sector bank. In Axis Bank the Auditors are themselves involved in fraud and hence the banks systems and procedures have failed.

SANJAY PRABHU

6 years ago

FINANCIAL INCLUSION OF AXIS BANK - Kashipur Axis Bank staff booked for Rs 2.20 cr fraud

Dehradun, July 22 -- The entire staff of Kashipur branch of Axis Bank Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. has been booked for defrauding about Rs 2.20 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>.

Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million from its 32 customers. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

According toaccording to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
..... Click the link for more information. reports, the Business Development Executive of the bank used to visit nearby villages and convince many villagers to open a bank account. He collected money from the customers but did not deposit it in their account. In some cases he deposited the money but got issued bearer cheques and withdrew the money.

In-charge of Kashipur police station said that so far 32 customers whose about Rs 2.20 crore was fraudulently withdrawn by the bank staff approached the police. A case under Section 4209, 467, 475 and 120B has been registered against the entire staff. Efforts are being made to arrest the accused, he added.

Published by HT Syndication with permission from Pioneer. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]

SANJAY PRABHU

6 years ago

Respected Regulatory Authorities


Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail on

http://www.moneylife.in/article/8/8106.h...

With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feels more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”


Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% YoY basis to Branch Heads and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Derivative Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds under their able leadership and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.


After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.


By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the present regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank branch on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.


I see the future of India in villages i.e. category III to VI Branches and hence in order to capture the great potentials of growth in villages and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion, but keep in mind that we should not run the bank at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the various charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Banks failure on Corporate governance which is as under



“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are readily available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to Hyderabad and Axis Bank being the schedule commercial bank while dealing with huge investment of public money should have invited quotes for premises through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of Rs. 282 crores , plus the large chunk of brokerage shared between top officials at Rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.


Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems in next 5 years and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of Satyam, which is already happening by forging the balance sheet figures such as showing high CASA figures on quarter end, by disbursing large credits and reversing those entries on 3rd of next month, showing NPAs below the actual higher NPAs. As far Axis Bank is concerned they took a biggest hit in Retail Assets, SME & Agri Credit and they have shifted most of the top officials from SME & Agri Credit to other departments. The banks quote of 0.30 % NPAs is misleading the investors and RBI should conduct the probe in against the CFO of the bank


My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.


Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion.


Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Comments invited on RBI New Banking Licence Policy
Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalized bank and save the investors money. Let us discuss all those points in detail on
moneylife dot in/article/8/8106 dot html#comment-4969

Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion

Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Sanjaymprabhu at gmail dot com 95940 88588


SANJAY PRABHU

6 years ago

Respected Regulatory Authorities


Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail on http://www.moneylife.in/article/8/8106.h...


With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feels more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”


Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% YoY basis to Branch Heads and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Derivative Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds under their able leadership and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.


After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.


By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the present regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank branch on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.


I see the future of India in villages i.e. category III to VI Branches and hence in order to capture the great potentials of growth in villages and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion, but keep in mind that we should not run the bank at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the various charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Banks failure on Corporate governance which is as under



“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are readily available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to Hyderabad and Axis Bank being the schedule commercial bank while dealing with huge investment of public money should have invited quotes for premises through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of Rs. 282 crores , plus the large chunk of brokerage shared between top officials at Rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.


Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems in next 5 years and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of Satyam, which is already happening by forging the balance sheet figures such as showing high CASA figures on quarter end, by disbursing large credits and reversing those entries on 3rd of next month, showing NPAs below the actual higher NPAs. As far Axis Bank is concerned they took a biggest hit in Retail Assets, SME & Agri Credit and they have shifted most of the top officials from SME & Agri Credit to other departments. The banks quote of 0.30 % NPAs is misleading the investors and RBI should conduct the probe in against the CFO of the bank


My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.


Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion.


Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Respected Regulatory Authorities
Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator know for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the poor by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail
With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feel more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”
Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% yoy basis to Branch Head and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.
After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.
By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the preset regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.
I see the future of India in villages / rural areas i.e. category III to VI Branches and hence in order to capture the great potentials of growth in Agri business and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion in those villages, but keep in mind that not at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Bank failure on Corporate governance which is as under
“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to hyderabad and Axis Bank being the schedule commercial bank should have invited quotes for such a huge investment of public money through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of rs. 282 crores , plus the brokerage to the tune of rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.
Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of satyam.
If you really wants to give the opportunity of adding new faces in the banking, then I request you to give the opportunity to the Indian Post Offices and LIC, and I am sure they will handle the job of financial inclusion in a sincere manner.
My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.

Sanjay Prabhu – Pune
President of Private Bank Employees & Investors Protection Forum
Ex Discharged Employee & Share Holder of Axis Bank

[email protected] 95940 88588

REPLY

Ravi Mishra

In Reply to SANJAY PRABHU 6 years ago

How do you come to know these facts?

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)