In a shocking development, it has now understood that the RBI had never audited the PNB’s Brady House branch, which deals with high network individuals for over 9 years. As the Nirav Modi and Mehul Choksi fraud exploded, the country understood the reality and the extent to which few industrialists and businessmen have cheated the country with the help of politicians. While the investigations into Nirav Modi scam is being done, the Department of Financial Services and the Chief Vigilance Commission have found that the RBI had never audited the PNB branch for 9 years.
According to the report, the last date of an audit done by the RBI was on March 31, 2009. Generally, all the banks undergo an audit every year, and the RBI updates the loans granted by the bank for heavy amounts. But shockingly, for 9 years, the RBI hasn’t done any auditing for the PNB’s Brady House branch. Another shocking information is that for every SWIFT transaction, a new reference number is supposed to be generated. In this case, it was the same number that was in use for the past 7 years.
When the PNB officials were questioned, they gave a lame answer saying “the SWIFT and the CBS system was not linked all these years because the bank was waiting for an upgraded version of banking software, Finacle”! The PNB officials admitted to the flaws and negligence from past 9 years in writing to the Finance Ministry.
The reports show that although Nirav Modi and Mehul Choksi have received a massive amount of loans, Nirav Modi had not put in a single application for over 500 LoUs that the branch issued. They were all done through the word to word discussions and due to the pressure of some ministers in the government during 2012-2013 admitted PNB official. The PNB officials also said that the foreign branches of the Indian banks have drained out of money lending massive loans to such people from past 8-9 years. He said when the Indian banks were not able to grant a loan to these people, the foreign banks were forced to give money to businessmen and industrialists.
So, from the year 2008 to 2013, the RBI governor was D. Subbarao. It was during his period the economy almost collapsed. He was also blamed for the downfall of the Indian rupee which at one point reach 69 Dollars crossing the psychological barrier of 60. During his last year as RBI governor, he was accused of ignoring the massive money laundering by the leading Indian banks and violating RBI’s KYC guidelines which pointed to the slackness and loopholes in the supervisory role of RBI. He was caught by the famous COBRA POST EXPOSE which exposed his role where he had totally ignored the warning of KYE regulations and money laundering. It was only after the media expose, the RBI took action against three banks ICICI, HDFC and Axis Bank.
Not to forget, it was in 2011, the RBI itself was caught holding counterfeit notes in its headquarters. This issue raised serious questions on the role of the then Finance Minister Chidambaram and RBI governor.
— Anil Mattoo (@AnilMatt00) December 13, 2016
The next RBI Governor form 2013 to 2016 was Raghuram Rajan who doesn’t require any introduction as to how he destroyed the Indian economy. Rajan who was the close aide of Chidambaram danced to his tunes and he was the one who granted loans to Nirav Modi and Mehul Choksi despite the Allahabad Bank Director raising serious concerns about huge NPA fraud.
It was the same Raghuram Rajan and P Chidambaram who cleared the deals of 11 companies on 16 May 2014, the day when Congress lost power. The papers were cleared by Raghuram Rajan just 5 days before PM Modi took the oath. Among the 11 companies who got clearance for importing gold from abroad, Nirav Modi and Mehul Choksi’s companies were also there and they were the ones who got maximum benefit.
Now, one can clearly understand that the rot is not just in PNB banks, but started from the Finance Ministry to RBI to the top officials in banks who have all played a big game to lend a huge amount of loans to these criminals for which they have received huge kickbacks.