Prakash Bakshi, a former authority of a National Bank for Agriculture and Rural Development (Nabard), who faces charges of financial impropriety and giving surprising welfare for financing abounding corporates over bad farmers, has curiously left an additional mile to settle his guilt.
Bakshi has assimilated Shree Shubham Logistics Ltd (SSLL) as a handling director. SSLL, that is a auxiliary of a over Rs 6,000 crore Kalpataru Group (including Kalpataru Power Transmission), was one of a biggest beneficiaries of strange soothing loans and seductiveness subsidies during his reign as a Nabard authority from Jun 2011 to Sep 2013. Bakshi was served a charge-sheet by a supervision on 30 Sep 2013 – his final day of use – for misappropriation and injustice of his executive position.
Though sources endorse that Bakshi had attended a assembly in Nabard as SSLLs deputy shortly after his retirement in 2014 itself, there has been no executive avowal of his practice until recently on a SSLL website. However, an essay of 14 Mar 2014 pronounced Dr Bakshi had already been allocated MD of SSLL, quoting sources arcane to a development.
This undeclared organization could also be since a late Central Service Group A executive is not authorised to accept private, blurb practice before a expiry of dual years from a date of his retirement though a permit from a President.
The Department of Financial Services (DFS), in response to information sought underneath a RTI Act, reliable on 22 Sep 2014, that Bakshi had sought, though was denied permission, to take adult short-term consulting assignments with multilateral and shared agencies, Zydx Industries and Kalpataru Power Transmission Ltd.
Government use manners are pure that any approvals for blurb practice are redeeming on a executive not carrying any executive exchange with a impending employers in a preceding 5 years; there should be no dispute of seductiveness between a policies of a office(s) he had hold in a final 5 years and a seductiveness represented or work undertaken by a organization he proposes to join; he should have had a purify use record, quite with honour to firmness and exchange with supervision as good as with executive open zone enterprises (CPSEs)/non-government organisations; a field blurb duties should not engage relationship or hit with supervision departments/PSEs; and a employer of a applicant should not get an astray advantage due to prior executive positions/experience/knowledge of a obligatory and, lastly, a benefaction emoluments and financial advantages should not be distant in additional of those now prevalent in a industry.
Many of these conditions seem to mount disregarded in Bakshis case. His purpose in creation corporates beneficiaries of soothing loans and subsidies has been during contingency with Nabard’s special charge to foster farming expansion by providing soothing loans to state governments for amicable zone projects.
However, notwithstanding a minute antiquated 1 Feb 2013 by Gurudas Dasgupta, Member of Parliament and ubiquitous secretary, Aituc, propelling a afterwards primary minister, Manmohan Singh to trigger a consummate examine into a functioning of Nabard in sequence to move most indispensable service to a farming poor, no movement was taken.
Dasgupta had serve pronounced that “evidence shows that Nabard’s change in priorities is directly related to a care of a chairman, Mr Prakash Bakshi, who, in a poignant flaw of policy, enclosed private entities as authorised institutions though consulting a RBI.
A minute petition mailed to a dialect of financial services secretary, Anjuly Chibb Duggal, seeking clarity on a standing of a tentative charge-sheet opposite Bakshi and his preference to find accede to work with SSLL, went unanswered.
Another reason for a remarkable avowal of Bakshi’s practice standing with SSLL could be that a association is learnt to have practical for inventory on a Bombay Stock Exchange, for that avowal of a tip supervision group was mandatory. Curiously, Bakshi’s sinister credentials has not been a halt for SSLL, notwithstanding justification that corporate governance, led by an able, veteran and pure house is a approach both to improved marketplace valuations as good as to securing a long-term financial health of a firm.
Questions mailed to SSLLs arch financial officer, Vishesh Singhvi, and to Bakshi himself, seeking a date of his fasten a company, his remuneration sum and reasons for probable dissimulation of a practice story until recently also went unanswered.
Apart from wilful, determined dispute of seductiveness during his reign in Nabard, Bakshi has been occupying an SSLL association prosaic in Goregaon post his retirement from Nabard, though receiving supervision clearway to work for them. Wrongdoers who abuse their positions are mostly obliged for a NPA (bad loan) pileups in a banking sector, that is inspiring a whole economy. Rather than retaliate them, a complement rewards such people, pronounced a tip executive in Nabard on condition of anonymity.
Policies customised for SSLL? After apropos Nabard’s authority in Jun 2011, Bakshi grown tighten ties with Aditya Bafna, Executive Director of SSLL, who was allocated Director on a house of Nabard Consultancy Services Pvt Ltd (Nabcons), a wholly-owned subsidiary, on 15 Jan 2010.
Within a few months, in a poignant flaw from Nabard’s charge and progressing policies, Bakshi finished private entities authorised for soothing loans for warehousing projects for a initial time by a round antiquated 27 Sep 2011. This was finished though consulting a Reserve Bank of India. Through another round antiquated 23 Dec 2011, a intrigue was revised to concede private firms an seductiveness remission of 1.5 percent, again though consulting a RBI.
Between 16-31 Mar 2012, Nabard disbursed Rs 759 crore, including refinance during 8 percent, to banks to account 516 room and cold storage projects. SSLL, a biggest beneficiary, accessed Rs 180.87 crore, purportedly to set adult 18 warehouses, with an additional reinstate of Rs 20 crore by a 15 percent funding advantage given to it underneath another scheme. Funds were disbursed even when SSLLs projects were found to be incompetent for a funding by a Ministry of Agriculture.
Sources in Nabard lay that even when SSLLs projects unsuccessful to accommodate eligibility criteria, officials would be harassed, served charge-sheets and retirement advantages funded for legitimately rejecting a applications. They contend Bakshi punished and disbanded a strange group that deserted a offer for a recover of subsidy, formed on a Ministry of Agriculture’s discipline and a special group was put in place to fast-track a clearance.
Poor governance: The inlet of a violations, finished mostly by ignoring a directions given by a RBI and a Ministry of Agriculture, and a pure dispute of seductiveness were initial minute in this article.
A week later, Nabard, underneath glow from a RBI, was forced to repel a argumentative schemes and find a reinstate from those to whom it was disbursed, that was highlighted in this article.
However, instead of usurpation blame, Nabard attempted to change censure for a financial transgressions and conflicts of seductiveness highlighted in a media to a RBI and a financial ministry.
Charts: Q1 GDP expansion slows to 7%; call for RBI rate cuts gets shriller
Court orders Rajiv Gandhi Trust to lapse land in Amethi to UP govt: Were Smriti Irani’s allegations true?
Rajan’s right: Govt should recompense PSBs, not use them as extended arms
Nabard’s story kept flourishing gradually worse, with justification of resourceful allocation of grants to an NGO called Janhit Foundation, Lucknow, that is related to former DFS Secretary, DK Mittal. The DFS secretary, in his/her executive ability has a clever palm in Nabard’s decisions. Mittal’s change can be sufficient gauged from a fact that sum grants of Rs 7.88 crore were disbursed to 303 NGOs in Uttar Pradesh in 2012-13, Janhit Foundation alone cumulative Rs 6.01 crore. A small Rs 1.87 crore accounting for an normal extend distance of between Rs. 8,000 to Rs. 80,000 was disbursed to a remaining 302 NGOs.
Interestingly, Mittal was unsinged by a media fire. He serves as an independent, non-executive executive during Max Life Insurance Company Ltd. He was also handpicked by Railway Minister Suresh Prabhu to conduct a high-level row to suggest ways to cure a Railways’ financial health in Dec 2014.