On PMO intervention, RBI Seeks Response From Kotak Mahindra Bank To Santosh Bagla’s Complaint
Mumbai based businessman Dr. Santosh Bagla has sent out a press release on how the Reserve Bank of India (RBI) has asked Kotak Mahindra Bank to examine and redress the grievance within a time-bound manner. Mr Bagla had earlier complained to the Prime Minister’s Office (PMO) about vindictive action by the bank which was passed on with routine instructions to examine the matter. An article in this regard had gone viral on social media. At that time Kotak Bank’s communication department had issued a statement about ‘certain persons’ having ‘distorted’ a simple communication and made ‘damaging statements’. 
 
The case pertains a ten  year old matter where the Bagla family which acted as guarantors  to Cogent Ventures India Ltd. The bank claims that it started routine recovery proceedings. However, according to Dr Santosh Bagla, the process obviously went bad. Dr Santosh Bagla claims a a ‘criminal conspiracy’ to falsely impliate his son Bhupendra, leading to his arrest, even when he had secured anticipatory bail. Mr Bagla claims that a Rs 50 lakh loan to Cogent Ventures (India) Limited was  an “unsecured loan” and this was “admitted and confirmed by the advocates of Kotak Mahindra”, which led to Buphendra Bagla securing bail.  
 
 
The Bagla family has since been fighting for justice and has written to the President’s Office, and the Union Home Ministry demanding a CBI probe against the bank and its senior management as well as the police offiicals involved in the arrest. They have also filed a complaint against the six Delhi police officials for “malafide arrest”. 
 
Mr Bhupendra Bagla says he suffered enormous social humiliation, huge business losses and even a breakdown of his marriage due to the actions unleashed by the bank.  “It took my family eight long years to come out clean, but we lost prestige, business respectability and faced social humiliation, besides suffering huge monetary losses in fighting the case. I will now file a defamation suit against Kotak”. 
 
 
Interestingly, Mr Rohit Rao, Chief Communication Officer of Kotak Bank claims that “the borrower entered into an out-of-court settlement and repaid the bank’s dues” and that the “bank always acts in accordance with the prevailing law and regulations. We shall be dealing with the matter appropriately". 
 
It remains to be seen what the bank says in response to RBI and whether Mr Bagla goes ahead with the litigation he has threatened; it is also a fact that banks are often over zealous in the means that they adopt for recovery, especially when borrowers are not big businesses. 
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    COMMENTS

    Kavi Tulasi

    2 weeks ago

    Last year Dec my dad joined as agent they gave some limited period of time to make people to join under him so dad joined us under him he do not know computer knowledge just they(dads senior member) took Xerox copy of gov IDs and signature from pan card they themselves created 5 policies totally 5 lakhs took. My question is... Whether it is safe or scam please anyone help me under this bef Dec 2019

    Mataprasad Dubey

    1 month ago

    This necessary to examine elegation and follow public observation which always have truth. After that take action to prevent people to suffer due to the fraud.

    Asokkumar Rathnam

    1 month ago

    The article does not appear to give all facts. Kotak's side of the story is not known. When a facility from a bank is not secured, it simply means there is no tangible security. If the facility has been guaranteed by third party, the Bank has got every right to proceed against the guarantor. Persons guaranteeing Rs. 50 lakhs can, by no stretch of imagination, be considered as small guys. Are we going to adopt the principle that small and medium-sized borrowers/ guarantors should not be approached for recovery since big borrowers have disappeared with liabilities of thousands of crores?

    ROSHAN AGARWAL

    1 month ago

    I am also fighting same case with kotak bank since 2015. The kotak bank has feaduently mortgaged our HUF property for third party loan to a stranger on the basis of bogus forged and fabricated documents without checking its legal validity. The CEO , directors and senior officrr are directly responsible for money laundring of public money snd hsrrasment to a innocent senior citizens. The RBI and CEO of kotak of directly responsible for increasing loan frauds innpublic system as they donot act when matter reported to them.

    Praveen Sakhuja

    1 month ago

    Interesting story to read. HAS any media pubished any such story where any medium class or lower bissiness has faced such action, and voice has been raised in his favor? Certainly not, then why for this family? I leave put to the readers to decide, whetehr it is fair or motivated action under any selfish motives. Bolo Jai Shree RAM

    REPLY

    Sucheta Dalal

    In Reply to Praveen Sakhuja 1 month ago

    Interesting point. We see the hand of digital teams here. But let me explain why this is a story -- it is because the small guy does not have resources to fight such a battle. You also seem to be a new visitor to moneylife -- we are full of stories about little Davids fighting Goliaths -- google our website you will fund plenty. Two heart warming ones are Mangelal Sharma and Injamuri a retired ticket checker. Suchitra Krishnamurthy's case is similar.

    Mr Jitendra

    In Reply to Sucheta Dalal 1 month ago

    I doubt if any other common man would be able to take on the fight with the mighty banks even in 2019. The system is not much supportive to lower middle class and middle class victims of frauds.

    Newme

    1 month ago

    Maybe it\'s just me but I couldn\'t understand the issue. Report is mix up of he said they said interlaced with some editorial statements.

    REPLY

    mahendra kumar

    In Reply to Newme 1 month ago

    The point raised here is how far a bank can go and whether the bank is empowered by rule of law I.e to proceed against the guarantor if at all there is one and secondly can right of set off be applied where there’s a lien i.e on the basis of a simple undertaking?
    If the answer is no then government represented by its authorities will definitely catch hold of bankers in question. There should not be any doubt at all. RBI is the regulator. It will look into it as well.

    mahendra kumar

    1 month ago

    It’s true.

    PMC Bank: Moneylife Foundation Helping Distressed Customers to File Writ Petition in Bombay HC
    Responding to the plight of distressed customers of scam-hit Punjab & Maharashtra Co-operative (PMC) Bank, Moneylife Foundation has decided to help them in filing writ petition in the Bombay High Court. 
     
    This is a very limited window of opportunity. We need to verify all the details and file the petition within the next 72 hours. It is in your interest to participate in this legal action because sometimes court orders benefit only those who file the petition and not all those who are affected.
     
    Steps to Join the Writ Petition
     
    We are moving to the next step: actual legal action. Here is how a depositor and customer of PMC Bank can join the writ petition.
     
    1. We need data to make the petition strong. For this share your basic information with us. If you have only a PMC Bank account please download the form from here. If you have an account in other banks as well please download the form from here.
     
    2. Send the completed form to [email protected] with "Writ Petition in PMC Bank Matter" in the subject line.
     
    3. For filing the writ, you would need to sign an affidavit and vakalatnama.
     
    4. Visit Moneylife Foundation office at 304, 3rd Floor, Moneylife Foundation, Hind Services Premises Industries Limited, Near Chaityabhoomi, Opposite Hindu crematorium, Off Veer Savarkar Road, Shivaji Park, Dadar-28
     
    5. Meet Aravind Natarajan, who is coordinator for this.
     
    6. Contact on 022-49205000 / 7045156415 (WhatsApp for sending message only).
     
    The reason we need detailed information about each case is because as part of the legal strategy, we wish to group the affected people under different heads. Also, you will be making affirmations in court, which has to be 100% accurate and we cannot have surprises later on and spoil our case. We will keep all information totally confidential and we will not share it with anyone else.
     
    Our legal action follows a public meeting of PMC Bank depositors organised by Moneylife Foundation along with All India Bank Employees Association (AIBEA) and Centre for Financial Accountability (CFA) on 12 October 2019 at Mumbai. (Read: “If PMC bank depositors need a solution they have to get engaged in large numbers in a legal process”)
     
    Moneylife Foundation was approached by several depositors of PMC Bank, highlighting not only their own woes but several systemic issues that are likely to destroy their financial credit and get them into serious legal difficulties, maybe even leading to imprisonment. 
     
    Prior to the public meeting, Moneylife Foundation had sent a detailed memorandum to RBI on issues faced by depositors, the current position under the law and the reliefs sought. (Read: Memorandum to RBI Suggests Quick Sale of PMC Bank & Implementing Gandhi Committee Report to Prevent Frequent Collapse of Cooperative Banks
     
    Moneylife Foundation also conducted a survey of PMC Bank depositors to collate specific details of hardship faced by them through an online survey tool. If you haven’t, fill up the Survey here https://www.surveymonkey.com/r/PMCBank 
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    COMMENTS

    M Ramachandiran

    4 weeks ago

    Loan

    Vijayan Kurup

    4 weeks ago

    I wd like to know is there any chance to avoid delaying justice??? history shows very tragic story of depositors.

    M Ramachandiran

    1 month ago

    I am contacting my resume ladies PG chocolate factory road Tavarekere Bangalore 560029

    REPLY

    M Ramachandiran

    In Reply to M Ramachandiran 4 weeks ago

    Loan

    Mr Jitendra

    1 month ago

    What happened to Madhavpura Mercantile? Did all the large size depositors recover their capital with interest who lost it in 2001? Does media and moneylife have any clue on whether the money of large size depositors was returned with interest of 17+ years?

    P M Ravindran

    1 month ago

    I know that this is the right step under the circumstances. But the scope is limited and results are for short term, except for the delays inflicted by the courts. The long term need is to make the appointments in the judiciary merit based and transparent and the judges accountable. We also should ban advocates from courts. The judges are expected to know the law and the parties to the case, the facts. Thus between the threesome any dispute can be legally resolved, amicably. Advocates only muddy the waters where they can fish for themselves only. I remember attending the concluding function of a seminar on Access to Justice organised by the supreme court advocates on record association. The then Union Law Minister, Ravi Shankar Prasad, had illustrated a fact with an example of how at the beginning of a case the petitioner used to go the court in a car and the advocate on a bicycle and by the time the case was disposed of the petitioner was on a bicycle and the advocate in a car. Very diligently he avoided mentioning the outcome of the case itself.

    CHANCHALKUMAR DAGADE

    1 month ago

    money life Team First of all Thank you so much for your support to bank depositors.. Lets do our best.. We are with you. Do keep posting. I am submitting form on the behalf of my mother for the The City Co-Op Bank Ltd Mumbai. Thank you

    Anjali Upadhyay

    1 month ago

    Its Good Idea for literate people. I totally support this but please come back with some other solutions for not so educated peoples too. becz there are many having current account in PMC Bank and they are working in small group of business and they have just lost every thing, they have some lakhs of money in this bank but now could not operate their business at all at this time.

    Dinesh Bhaskar

    1 month ago

    Brilliant! Finally, one media house with a sense of genuinely wanting to help people in distress.

    Proud of the entire team @ MoneyLife!

    CHANDRASHEKHAR VINAYAK KAKATKAR

    1 month ago

    Thank You ML team - on behalf of the PMC depositors in distress.
    I have forwarded your msg to many of my relatives & friends thru Whatsapp group.
    Also offered them my services to fill up the form.
    Hope to get a good response.

    P S Krishnan

    1 month ago

    Well done ML. This is step that the Government - Either center or state and RBI should have initiated. You are doing a far effective work than Governments and RBI, all these frauds and inefficient Government and RBI employees should be sacked enmasse. Keep up the good work. PMC is an eye opener for me. I was planning to invest my retirement PF in a Bank FD, now I willl split it as 1 lakh in several banks and put a major part in Sundaram Finance FD which is Gold standard and more credible than Indian Sovereign Bonds. ML should initiate a campaign for hiking of deposit insurance on par with the investment, only the interest component should be at risk not the principal, the Entire principal should be compensated by the Government. Why should honest depositors suffer for RBI and Governments corruption and inept processes

    Ajihtkumar Pillai

    1 month ago

    Great to note that Moneylife js joining the poor PMC Bank Customers , who have been cheated, by offering legal support All the best for the same

    GLN Prasad

    1 month ago

    This is the exact way of helping isolated, distressed depositors. ML deserves high appreciation for this commitment.

    nadeem

    1 month ago

    Kudos to team Moneylife...! Always in the forefront fighting for the common man..!

    PMC fraud: Praful Patel under ED lens for using Wadhawans' jet
    Caught in the eye of the storm over 'Dawood-Mirchi' links, former Union Civil Aviation Minister Praful Patel faces yet another embarrassment for frequently using private jets of Wadhawans, accused in the Rs 4,355 crore Punjab and Maharashtra Co-operative(PMC) bank scam.
     
    Documents which are part of the Enforcement Directorate (ED), reveal that Patel, as the then Union Minister of Heavy Industry was a frequent flier on Wadhawans' luxury private jet Bombardier Challenger 300. 
     
    The passenger manifest report of Mumbai Airport, dated March 31, 2012, reveals that Patel, Rakesh Wadhawan, promoter of Wadhawan group, Bollywood actress Preity Zinta and a few other VIPs boarded AVT PIL Bombardier for Delhi from Mumbai at 4.30 p.m. 
     
    After a few weeks on 28 May, 2012, Patel boarded Wadhawan's Bombardier for his constituency Gondia from Mumbai with an American citizen identified as A. Scott, one Miss Kim Bora and two other passengers. A month later on June 23, the Nationalist Congress Party (NCP) leader charted VT PIL Bombardier again when he flew from Mumbai to Delhi. 
     
    Sources in the ED said that Patel as then Union Minister continued to charter Wadhwan's private jets for a long time.
     
    Involved in the dubious land deals allegedly executed by front man of drug kingpin Iqbal Mirchi, the NCP leader had been close to HDIL Chairman Rakesh Wadhawan, arrested in the multi-crore PMC bank scam, on charges of siphoning off public funds. 
     
    During investigation, ED sleuths discovered that Wadhawans owned a company, Privilege Airways Pvt Ltd, which purchased two ultra-luxury jets Falcon 2000 and Bomabardier Challenger 300, out of the public funds. 
     
    Both aircrafts were seized by the ED along with a fleet of Rolls Royce, Mercedes and BMW cars. The agency later procured the passenger list of both the aircrafts to ascertain whether luxury jets were loaned or given to the VIPs for a free ride. 
     
    Sources said that the list procured from the airport authorities reflect that Patel, his family and friends were the frequent fliers.
     
    While talking to media persons in Mumbai on Tuesday, Patel denied any links with D-company or Iqbal Mirchi and clarified that no money was exchanged with any member relating to any land deals. On links with Wadhawans and hiring his jets frequently despite being a public servant (Union Minister), Patel's version has yet to come. 
     
    Sources said that Wadhawans, arrested in the PMC Bank scam had loaned their private jets to many politicians and Bollywood stars during the past 7-8 years. 
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    User

    COMMENTS

    Tukaram Raja

    1 month ago

    All along it has been the borrowing customers of the bank cheating the despositors of the bank by not returning the bank dues. Now in India the bank has cheated the depositors, just for a change. Apparently the regulators which are RBI, DICGC, Finance Ministry and the so called F rauditors have joined together in this loot taking banking to new heights.

    Nagaraju Bommanahalli

    1 month ago

    Due to Maharashtra election both parties are close their mouth about PMC scam ,all parties BJP Congress NCP shivasena involved and taken huge bribe.
    I will ask both BJP and Congress,how much money recovered till today by selling assets of fraud persons who taken huge fraud loans,how much money returned to the bankrupted bank account holders , if you really honest give details how much fraud happen till today .don't do drama,I lost several lakhs from Alpic finance a NBFC in twenty five years back, but till today I have not received single paise , this Alpic finance company is a subsidiary of Cipla group, this NBFC done huge fraud,but till today no action taken, these companies go to court and take stay order for the sale of theirs assets, Court will drag the case to twenty to thirty years at that time all investers will die, these fraudessters enjoy our loot money with political leaders, these are all drama nothing will happen only poor will die
    In India nobody knows how Indian companies are doing fraud from the beginning to last ,for example a big business men will start the company in India as below .His companies actual value is Rs2000crores but with the help of the auditors,Banks,and chartered accountants he made his company s values to RS 6000 crores by book adjustment with bribe and he call IPO that is in share market and collect Rs10000 crores in share market, first he pumped 60%of money to foreign country in the name of business and will deposit most of the money in his name next he will file bankruptcy due to losses and will write off all the loans this is the business doing in India ED is doing drama ICICI Bank chandakochar is well known to all she done huge fraud in ICICI Bank, this drama of enquire is doing from past one year, but still she is not arrested, reasons In this icici bank scam all SEBI auditors ED RBI central government rating agencies big leaders of all parties involved.central government making all efforts to avoid arrest these fellows,if arrested all all foreign country become knows most of the Indian companies running on bogus and take away all foreign investment,then India become bankruptcy.This is well known by central government hence avoiding all efforts to arrest directors of icici bank chandakochar DHFL jetairways Videocon kingfisher airline PNB bank head [email protected] etc .even Vijaymalya kingfisher airline companies don't have single plane in his companies name but all banks gave Rs10000 crores money, same type loans gave to jet airways,DLF, Devan housing finance company,[email protected],fs,etc wait in few months most of the common people investment in icici bank NBFC PSU banks equity NCD mutul funds become Zero,All parties RBI officers, SEBI, etc are corrupt they are taking India towards bankruptcy.

    P M Ravindran

    1 month ago

    I do not know if Praful Patel's role in the privatisation of Delhi and Mumbai airports and purchase of unwanted planes for air india will also reach any logical end.

    Nagaraju Bommanahalli

    1 month ago

    In India nobody knows how Indian companies are doing fraud from the beginning to last ,for example a big business men will start the company in India as below .His companies actual value is Rs2000crores but with the help of the auditors,Banks,and chartered accountants he made his company s values to RS 6000 crores by book adjustment with bribe and he call IPO that is in share market and collect Rs10000 crores in share market, first he pumped 60%of money to foreign country in the name of business and will deposit most of the money in his name next he will file bankruptcy due to losses and will write off all the loans this is the business doing in India ED is doing drama ICICI Bank chandakochar is well known to all she done huge fraud in ICICI Bank, this drama of enquire is doing from past one year, but still she is not arrested, reasons In this icici bank scam all SEBI auditors ED RBI central government rating agencies big leaders of all parties involved.central government making all efforts to avoid arrest these fellows,if arrested all all foreign country become knows most of the Indian companies running on bogus and take away all foreign investment,then India become bankruptcy.This is well known by central government hence avoiding all efforts to arrest directors of icici bank chandakochar DHFL jetairways Videocon kingfisher airline PNB bank head [email protected] etc .even Vijaymalya kingfisher airline companies don't have single plane in his companies name but all banks gave Rs10000 crores money, same type loans gave to jet airways,DLF, Devan housing finance company,[email protected],fs,etc wait in few months most of the common people investment in icici bank NBFC PSU banks equity NCD mutul funds become Zero,All parties RBI officers, SEBI, etc are corrupt they are taking India towards bankruptcy

    REPLY

    dr.anandagarwal58

    In Reply to Nagaraju Bommanahalli 1 month ago

    Very true

    Monika Bhatia

    1 month ago

    #NOTA #NOVOTE
    MAHARASHTRA ELECTIONS
    PMC BANK VICTIMS NEED FASTRACK JUSTICE
    DONT KILL PEOPLE

    Monika Bhatia

    1 month ago

    RBI recapitalise pmc bank
    You have assets seized attached
    Do merger with larger bank
    Release money of customer
    Politicians are deemed murderers
    They looted the bank
    Y innocent people suffer
    They declared investment
    Paid taxes
    Hardearned money savings of life of 30 40 years

    Monika Bhatia

    1 month ago

    #need justice politicians looted pmc bank
    Recapitalise pmc
    RBI merge pmc with larger bank
    Justice wanted

    Monika Bhatia

    1 month ago

    Shocking news of deaths mounting whether cardiac arrest or suicides @pmc bank victims !!!!!
    This was bound to happen.... Many many more with illness stress or deemed dead we aren't aware of....Bureaucrats looted the bank.And now they are not even worried of senior citizens who are loyal vote banks ; paid taxes ; declared investments;hardearned saving of entire life; such vulnerable section of society who are victims of pmc bank are suffering pains with sleepless nights and are restless.Why can't govt asks RBI to recapitalise the bank immediately if they say they have got enough assets seized and attached.Relief sd be expeditiously done.No more deaths and deemed death. NOTA and No Vote #pmcbank victims for Maharashtra Elections!!! Fast track resolution.

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