Showing posts with label Scam. Show all posts
Showing posts with label Scam. Show all posts

Tuesday, November 22, 2011

Biotor Scam: Four banks have exposure of Rs. 500 crore


Original
Source :NDTV:Profit:Vijay Iyer, November 21, 2011 (Mumbai)

A Central Bureau of Investigation (CBI) probe into the Biotor Industries scam has found that four nationalized banks namely Bank Of Maharashtra, Central Bank of India, Oriental Bank of Commerce and IDBI Bank have violated KYC or Know Your Customer norms.

 This means banks have not gathered adequate information about customers as mandated under these norms. 

Biotor Industries had sought loans from banks for procuring raw material from the farmers directly. Loans were then alleged to have been transferred to bank accounts opened in the names of "fictitious" farmers.
According to the Central Bureau of Investigation, these banks have opened 8000-9000 accounts in fictitious names and transferred loans into these accounts. The preliminary investigation has concluded that the loans will become Non Performing Assets (NPAs). 
According to the CBI's Banking Fraud and Securities cell that is investigating Biotor Industries, the four banks have an exposure of Rs. 500 crore to Biotor Industries scam that is estimated to be Rs. 1,300 to Rs. 1,500 crore.
Oriental  Bank is said to have an exposure of Rs. 120 crore, while Central Bank of India, IDBI and Bank of Maharashtra have an exposure to the tunes of Rs. 120 crore, Rs. 115 crore, and Rs. 50 crore respectively.
The CBI is now set to question the senior management of these four banks and file a charge sheet soon.
The scam came to light five months back, when Bank of Maharashtra had filed an investigation into the issue. It was subsequently taken up by the CBI.


Monday, December 13, 2010

Balakrishnan: I did not receive any letter from Regupathi when I was CJI

Former Chief Justice of India K G Balakrishnan.












Source :The Hindu, Delhi:December 8, 2010
National Human Rights Commission (NHRC) chairman K.G. Balakrishnan on Wednesday denied reports in a section of the media that the former Madras High Court Judge, Justice R. Reghupathi, had written to him when he was the Chief Justice of India (CJI) alleging that the former Union Telecom Minister, A. Raja, had tried to influence him. Justice Balakrishnan also denied that he had suppressed that letter.
“Such reports cast aspersions on me, that I had committed dereliction of duty… The allegations are absolutely incorrect,” he said in a statement here. Justice Balakrishnan made it clear that he had not received any such letter or communication directly from Justice Reghupathi while he was in office.
Gokhale’s report sought
When the media reported the incident, at that time Justice Balakrishnan sought a report from the then Chief Justice of the Madras High Court, H.L. Gokhale, and the latter sent him a report wherein nothing was mentioned about the name of any Union Minister having talked over phone with Justice Reghupathi to influence him. “Therefore, there was no occasion for me to talk to the Prime Minister or to take any further action.”
‘Facts disclosed’
Justice Balakrishnan said he had disclosed these facts at the relevant time. “Moreover, if anything happened like that, which amounted to interference in the judicial function of Justice Reghupathi, he himself could have exercised his powers of contempt of court for which no permission is required from the CJI.”
‘Facts can be verified’
“It appeared that Justice Reghupathi made a statement that he reported the matter to the Chief Justice and he certainly meant the [then] Chief Justice of the Madras High Court and not the CJI,” Justice Balakrishnan said, adding that these facts may be verified.
The letter, which was written to him by Justice Gokhale, might be available in the office of the present Chief Justice, Justice Balakrishnan said.

Court orders suspension of Chairman of Tamil Nadu Bar Council

Source :K.T. SANGAMESWARAN:The hindu:CHENNAI, December 7, 2010
The Madras High Court on Tuesday ordered the suspension of the membership of R.K. Chandramohan and consequently his Chairmanship of the Bar Council of Tamil Nadu and Pondicherry (BCT) forthwith for an alleged attempt to influence a High Court Judge using the name of the then Union Minister A. Raja in a matter relating to an anticipatory bail plea.
In its 78-page common order on two public interest litigation petitions, a Division Bench comprising Justices F.M. Ibrahim Kalifulla and M.M. Sundresh said that apart from attempting to influence the Judge R. Regupathi (since retired), Mr. Chandramohan was stated to have behaved, in the words of the Judge, in a very unruly manner in the open court.
The Bench said the petitioner should file a formal complaint, along with the High Court order, to the BCT within two weeks. He should file a complaint copy with the Bar Council of India (BCI) simultaneously. Mr. Chandramohan should not be permitted by the State Bar Council to function as chairman pending disposal of the disciplinary action by the BCI.
In a petition, the petitioner, Elephant G. Rajendran, sought a writ against Mr. Chandramohan directing him to explain under what authority he held the office as Chairman of BCT. In the other petition, he sought a direction to the BCI to initiate appropriate action against the BCT Chairman.
The petitioner submitted that an anticipatory bail application filed by a medical practitioner came up before Justice Regupathi on June 29 last year and Mr. Chandramohan appeared on behalf of the accused. During the hearing, the Judge stated that “a Union Minister had called me to exert influence in favour of accused and to release the petitioner/accused on anticipatory bail. You yourself know everything.”
The petitioner contended that Mr. Chandramohan's conduct in casting aspersions against the Judge was gross contempt and interfered with the administration of justice. He had used the name of a Union Minister for achieving an illegal action. Therefore, he should be disqualified from the post.
Following a direction from the Judge, the High Court Registry produced a letter dated July 2, 2009, written by the Judge to the Chief Justice of Madras High Court in which he had stated that on June 12, 2009 while he was in his chamber, Mr. Chandramohan met him and said that two persons who were family friends of the Union Minister had filed the petition for anticipatory bail in a criminal case and it must be considered favourably. He also handed over his mobile phone saying that the Union Minister was on the line to talk to the Judge.
Right away, the Judge said, he discouraged such conduct and told Mr. Chandramohan that the case would be disposed of in accordance with law. On June 29, in the open court the advocate vociferously remarked that the court was always taking sides with the prosecution and not accepting the submission made by the counsel for the accused in the case while giving importance to the prosecutor. Later, the Judge directed the Registry to place the papers before the Chief Justice for posting the case before some other Judge.
In its order, the Bench said there was no reason to doubt the veracity of the Judge's statement in the absence of allegations of ill will or mala fides against the Judge. The conduct of the BCI Chairman in having maintained silence in his counter affidavit went to show to a very large extent that in effect he admitted the allegations. He neither repented nor displayed any conduct of remorse. If really such an incident had not taken place, the first person to have refuted the Judge' s statement should have been Mr. Chandramohan.
The Bench observed that the Judge's reaction was much more courteous than was expected. What had been alleged against Mr. Chandramohan by the Judge did call for stringent action at that point of time itself by handing him over to the appropriate authorities. Unfortunately, Mr. Chandramohan instead of realising the Judge's magnanimous attitude displayed a much more disastrous attitude by behaving in an unruly manner in the court hall when the Judge had no other option except to reveal in the open court the monstrous and unpardonable behaviour of the advocate.
It said the magnitude of the behaviour of Mr. Chandramohan “was unprecedented and the same had to be dealt with an iron hand to ensure that such a behaviour was not even dreamt to be attempted by any other unscrupulous element under the garb of wearing the glorious robes of an advocate.”
Having regard to the order passed and directions issued, the Bench said it was not now inclined to take any proceedings for contempt.