Fake letters of credit purchased Rs.150 Crore fraud surfaces at J&K Bank Special Correspondent Srinagar : Governance at J&K’s premier financial situation J&K Bank continues to plummet. Earlier it was a spate of Non-Performing Assets (NPA’s) amounting to couple of thousand crore and more , which management of the bank attempted to hide but now a massive fraud has been detected in the Bank with active collusion of the top management. As per reports the entire Delhi zone is under scanner for purchasing fake letters of credit (LC’s) to the tune of whopping Rs 150 crores. The fraudsters as per sources initially started their activity way back in year 2011 from Ghaziabad branch through accounts titled as M/S Sanjay Electronics, Maa Durga, Amit Trading, Nitin Gupta and Pankaj Gupta. Thereafter the fraudsters spread their operations to Rajendra Place branch and commenced their operation through M/S Electronic Points, Mayur Trading Company, Ganesh Trading Company, Ankush Gupta and Pawan Kumar Gupta. Reportedly the modus-operandi followed by the swindlers was that they would draw cash against fake Letters of Credit (L.C) of other banks without getting the same confirmed from the establishing bank. This entire operation had the blessings of top management of the bank and the same is established by the fact that the facility was enjoyed by the fraudsters without bank doing any due diligence and credit assessment which is an established norm in such cases. This is further reinforced by the fact that the routine inspection of these branches was deliberately not undertaken to hide the scam and wrong doings of the management of the bank at very senior levels. The Audit and Inspection department of the bank and even the Audit Committee of Board have not initiated any action in the matter so far and have been caught napping thereby putting a serious question mark on their ability and conduct the operations of JK Bank. Now that the amount of fraud has snowballed to over Rs 150 crores andthe branch heads involved namely Vijay Kumar Khazanchi and Avtar Kaul have been placed under suspension on 17th, November 2014 for their acts of omission and commission at their respective branches. The axe has fallen on the small fry while as other functionaries of the bank which includes incumbent Zonal Head and erstwhile Zonal Head presently manning a top management position have been let go scot free. The top management functionary with whose active connivance and complicity the fraud has been perpetrated has misused his official position and prevented the Compliance and Regulatory Department from reporting the fraud to Reserve Bank of India despite it being mandatory and a regulatory requirement. The regulatory guidelines explicitly specify that frauds of this nature and quantum are to be reported within one week of its surfacing. As per regulatory guidelines the bank has to file FIR with crime branch in this case and it is also to be reported for investigation to Serious Fraud Investigation Office (SFIO) Ministry of Company Affairs, Government of India besides Banking Security and Fraud Cell which is specialised cell of Economic Offences Wing of the CBI keeping in view the fact that the quantum of fraud is much more than Rs 25 crore. ‘Who will form the next Govt.’ Street discourse shifts to mainstream politics Sameer Showkin Lone SRINAGAR: As the assembly elections in Kashmir valley have concluded with only one phase left in Jammu, the wide debate on the streets presently is who will be the next chief minister of Jammu and Kashmir. In buses, shop fronts and other public places the only debate among the people is “who will form the next government”. Many also seem eager to watch, which regional party forms government with the rightwing BJP. However, both NC and PDP are still silent about its coalition partners. Unlike in the past elections post militancy, this time the election fervor among people was much high. The same can be gauged from the fact as Srinagar, the summer capital of the state, recorded 28 percent polls, which is the highest since 1987. Though, the poll results are set to be announced on December 23, the eagerness is so much among the people that almost at every nook and corner, only elections are debated. Reports said that these debates also lead to minor scuffles among the people. Abdul Ahad, in his late eighties, he doesn’t believe in any change saying…”I have promised to Sheikh Abdullah at Charar-e-Sharief in 1960’s that our all generations will continue to vote for ‘Albaen’.We can’t deceive NC,” he said and was sure that NC would form the next government. Not only at public places, election fervor is also high in government offices and other establishments. The same discourse has flooded the social networking sites like Facebook. People on Facebook are posting status who will be the next chief minister of Jammu and Kashmir. In the comments thousands of people could be seen taking part and posting their views. According to sources, many contesting candidates, fearing defeat, are also not feeling well of late and are bed ridden. Like Srinagar, places like Anantnag, Shopian, and other pro-boycott bastions, the only debate is about the formation of future government. Headless PSC fails to appoint 99 KAS officers Bilal Kuchay SRINAGAR: In absence of Chairman and its members, not only the routine work gets affected in the Jammu and Kashmir Public Service Commission (JKPSC) but it has also stalled the appointment of 99 KAS officers who cracked the exam in August this year. Around four and a half months have passed since the result of 99 KAS officers was declared by JKPSC on August 1, 2014 but they allege that the commission is yet to forward their recommendation list to General Administrative Department (GAD). “PSC has been rendered defunct with its lone member demitted office last month. Fate of 99 candidates who qualified KAS 2014 still hangs in air as the Govt. is yet to issue any formal appointment order. PSC has not forwarded our recommendation list to GAD,” a group of 2014 KAS qualifiers told Kashmir Monitor. The applications for this examination were invited by PSC in June 2013 and the preliminary test was conducted on September 29, 2013. The mains examination was conducted in March-April 2014 and the interviews were conducted from 23 June 2014 After, S L Bhat completed his term as Chairman of the PSC on September 10, the Cabinet on October 10 approved appointment of Khurshid Ahmad Ganaie, IAS, Financial Commissioner, Industries & Commerce Department, J&K, as Chairman Jammu and Kashmir Public Service Commission. However, the process of appointment of KAS officers was further delayed after Governor in the month of October raised objections over the names recommended by the Government for the PSC posts. According to sources, the ruling coalition partners have also played their part in stalling the process as instead of appointing only member of the Commission as Acting Chairman in order to facilitate the completion of process regarding appointment of KAS officers, the coalition partners remained busy in making choice of incumbents for the posts of the PSC. Sources said that the process for the appointment of such a large number of KAS officers, which was set into motion more than a year back, is hanging in balance during the past more than four months and will continue till the new Government is formed next year. “The formal appointment of these KAS officers will be made under a new dispensation,” sources told Kashmir Monitor adding that “PSC has been rendered handicapped as there is no chairman and members in the commission this time.” The Jammu and Kashmir High Court on November 22 had also sought an affidavit from the state government indicating the time it will take to complete the process of filling up of position in Jammu & Kashmir Public Service Commission and the reason for not filling the up these positions so far.
Posted on: Tue, 16 Dec 2014 05:41:39 +0000
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