BEFI Circular -Probe NPA Accounts

NARESH PAUL CENTRE

53 Radha Bazar Lane, (1^st Floor), Kolkata – 700 001

e-mail : pradipbefi@yahoo.co.in        Website : http://www.befi.in/

(Ph):033- 2225-4414/2236-5108   (M) 94331 44271    Fax: 033-2236-5109/2242-069

Circular No: 22/2014                                                                                                                               06^th  August, 2014                                                                                       

To All Affiliates/Office Bearers/CC/GC Members

Dear Comrades,

PROBE NPA ACCOUNTS

Following is the text of our letter dated 5^th August, 2014 on the captioned subject addressed to Sri Arun Jaitely, Hon’ble Finance Minister as also to Governor, Reserved Bank of India. The letter is self explanatory. You all will please recall that while publishing our book containing list of defaulters with outstanding amount of Rs 10 Cr and above we expressed our concern on the huge amount of provisioning out of operating profit of public sector banks against NPA, which in the process is weakening the financial health of PSBs. Drainage of substantial sums takes place every year in the name of compromise settlements with big borrowers in which unholy nexus between top executives of PSBs, corporate lobby and corrupt politicians  works. Recent development in Syndicate Bank is the manifestation of our apprehensions.

We have to intensify our campaign in line with the demands raised in our captioned letter.

Text of the letter:

“We are not at all surprised at the press reports of CBI arresting Sri S.K.Jain, the Chairman & Managing Director of Syndicate Bank, a leading Public Sector Bank (PSB), for allegedly negotiating an extension of Credit Limit to Bhushan Steel in return of illegal gratification to the tune of Rs.50/- lakh. As per reports, CBI recovered Rs.21/- Lakhs in cash, Gold worth Rs.168/- Lakhs and Fixed Deposits worth Rs.63/- lakhs from Sri Jain’s residence; hence, there is every possibility of many more such clandestine deals beyond the one worth Rs.50/- lakhs with Bhushan Steel. Incidentally, it is further reported, Bhushan Steel account for over Rs.100/- Crore  of NPA (Bad Loans) of Syndicate Bank while Prakash Industries, another corporate named in the case registered by CBI, account for over Rs.120/- Crore.

Indeed, we have all along been insisting that unholy nexus between Big Corporates and persons in high places produce the largest chunks of NPA of PSBs. The case involving Jain, we think, is just a tip of the iceberg; CBI has just collected a pebble from the shore while the vast ocean still remains unexplored.

In the backdrop of the recent exposures, we urge upon your directing a thorough investigation into

 

i.                 all NPA accounts of Rs.10/- crore and above;

ii.                all cases of Restructuring of Debts involving accounts referred to in (i) above;

iii.               all cases of one time settlement involving accounts referred to in (i) above;

iv.              involvement/complicity of top Executives of Banks concerned in cases referred to in (i), (ii) & (iii) above.”

                                                                                                                

With greetings,                                                                                                                                                     

                                                                                                                                                     Comradely yours,