“I warned about giving loans to Nirav Modi and Choksi to Finance Ministry and Dy RBI governor in 2013, but I was threatened and asked to keep quiet”, Ex-Bank director blows the lid!

Finally ” THE” man has come out and revealed the entire story of the Nirav Modi scam and the massive bank loot. All this time Congress was trying to escape their role in the massive bank loot that happened 8 years back and tried to shift the blame on Modi government. But finally, the man who was an eye witness to the entire scam since 2012 has spoken out and revealed who supported Nirav Modi and his uncle Mehul Choksi who looted 11,400 crores from banks.

Dinesh Dubey, who was the former director of the Allahabad Bank has blown the lid on Nirav Modi and his uncle Choksi who were cheating the banks since 2011 and had taken crores of money without providing surety or guarantee. Dinesh in an exclusive interview with First Post has revealed that Gitanjali Gems owner Mehul Choksi had requested for a loan of Rs 50 crore in 2013 in addition to Rs 1500 crore which he had got earlier. But Dinesh Dubey, had then put a dissent for his request that Mehul Choksi should first clear the 1500 crore loan which was taken earlier before he applies for a fresh loan.

But Dinesh Dubey got to know that the 50 crore loan applied by Choksi was approved even before he could return 1500 crore loan by the board member of the bank.  In the Allahabad Bank board meeting that took place on 14 September, 2013, Dubey strongly opposed sanctioning the loan. He said “When I opposed the Gitanjali Gems loan proposal, my fight with Allahabad Bank board got really intense and dirty. They tried to persuade, mollify and even threaten me but I said such loans to the corporates without recovery will only add to more non-performing assets. I also wrote to the Reserve Bank of India and secretary, financial services in the Ministry of Finance in my effort to warn them of a massive scam looming large. My request was to take immediate preventive action and keep a watch on all the companies linked to Choksi’s firm, as they were accumulating loans without making payments to the bank.”

Finding no other way Mr Dubey wrote to then deputy governor of the RBI, KC Chakrabarty, explaining that “a meeting of MCBOD of Allahabad Bank was held on 14 September, 2013. Regarding agenda item No 4/6 pertaining to M/S Gitanjali Jewelers for sanction of Rs 1500 cr+50 cr. I have not given my consent. But, they ignored my dissent note and sanctioned the loan. This is for your information and necessary action please.”

Unfortunately, he received no reply and there was no action taken against Choksi. Dubey was appointed as Bank Director by the then Congress government, but his relationship with the government turned ugly after he started opposing loans to big businessmen without seeking surety.

Dubey, who sensed a greater scam in the entire episode, next wrote to the top officials in the Ministry of Finance in November 2013. In his letter, he alerted the government and the officials that a major scam was taking shape and the bank may have to face a huge financial crisis if this is allowed to continue. But within days after the Finance Ministry received his letter, there was enormous pressure on him from government and Allahabad bank to tender his resignation immediately.

In his statement to First Post he said  “The top officials in the Ministry of Finance and at Allahabad Bank wanted me to resign. I was told to mend my ways. I said the government had appointed me to keep a watch on the bank’s activities and prevent any wrongdoings. If I can’t do my job, it is better I should go. Then, I was told if I was ready to put up my resignation I must highlight that I was doing it for health reasons. I did that and resigned in February 2014.

” I had told the board that Choksi and his firm will turn into a big scam one day. Even if they had listened to me, this scam could have been avoided. I remember the present managing director of PNB was then serving as the general manager with Allahabad Bank and he was aware of what was happening inside the shadowy walls of the board meeting,” Dubey said.

But ultimately he had to resign following heavy pressure from the then Congress government and the Bank. His letters to finance ministry have now been accessed by First Post where he writes…

“On Friday, 22 November, 2013, a meeting of MCBOD and other four committees and also a board meeting was held at Kolkata at the Grand Oberai Hotel. In the board meeting, there was an agenda regarding Geetanjali Jewellers. This agenda had already appeared in past board meetings more than four times, and every time I had expressed my dissent. But, this Agenda was again brought in this meeting for approval. The CMD told me to give my consent to pass it, but I refused and again expressed my dissent note.”

“I have never seen in my forty years’ journalism career such type of below-dignity work, misuse of office and corruption. I would like to request you for some changes in guidelines. When the management has powers to approve the loan of up to Rs 400 crores, then why such cases are brought to board meetings? It is very clear that just to save them from any inquiry and legal action, in name of rectification and deviation, they bring such cases for board approval… when the board approves this, they are free from any legal inquiry or administrative action on behalf of the board.”

Mr Dubey says that he witnessed the making of the entire scam which today has turned into a mammoth. He says that such huge amounts of loans were not sanctioned by lower officials and it involved the top officials of banks and top ministers who favored Nirav Modi and his uncle Choksi in getting crores of loans. He also says that the present Managing Director of PNB who was then the general manager of Allahabad Bank knew everything about the scam but he remained quiet for certain reasons. The finance ministry also knew that it was a scam in making but chose to ignore and instead tried to shut Mr Dubey’s mouth and asked him to remain quiet.

So, now one should understand that such NPA scams are hanging in every bank in the country which has ruined the economy to the core. This Nirav Modi bank fraud is neither the first one nor is the last one, but soon you will see many more such bank frauds revealing themselves in future as the Modi government tightens the screw!!!

This is exactly what PM Modi quoted during his Lok Sabha Speech saying that 82% of the bank loans in the country were NPA which were granted by the then Congress government for 10 years. The stringent action being initiated by IT and ED is what has made fraudsters like Vijay Mallya and Nirav Modi fled India. Wait and watch you will see many more worms coming out and you will understand what exactly the Congress government had done to banks of the country!!!

Credit and Source: https://www.firstpost.com/business/pnb-fraud-upa-govt-couldve-avoided-nirav-modi-scam-in-2013-says-ex-allahabad-bank-director-who-blew-whistle-against-loan-4353983.html

Republic TV

Aishwarya S


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