The final turn in Bank of Baroda’s comi-tragic efforts to redeem a Rs 550-crore loan to Vijay Mallya is nonetheless to come.
Firstpost investigations have already shown how a bank systematic a solidify on 5 accounts belonging to 3 of a unchanging sell customers. Their accounts were put on garnishment since they were identified as “guarantors” to Mallya’s loan.
The initial patron is a rancher in Uttar Pradesh’s Pilibhit district, a second a unfeeling businessman in Khar and a third a confidence ensure in Vile Parle (both formed in Mumbai).
The confidence ensure was handling a Pradhan Mantri Bima Yojna comment and had a grand change of Rs 93 in his comment when BoB froze it to make him cough adult a loan on which Vijay Mallya had defaulted!
Firstpost reported this caricature in 3 progressing tools of this stability series. You can review about them here:
BoB mistook rancher for Kingfisher director
BoB freezes a/c with Rs 93 in query for Rs 550 crore!
Bank of Baroda freezes comment of unfeeling vendor!
The bank, it after incited out, mistook a 3 business for dual directors on a house of Kingfisher — Manmohan Singh Kapur and Subhash R Gupte — since of a “similarity” of a names of these dual gentlemen with those of a farmer, unfeeling businessman and confidence guard! The bank wanted to ensue opposite them since they were guarantors to a loan.
It is over anybody’s grasp to figure out how a bank can brew adult a temperament of dual guarantors to a Rs 550-crore corporate loan. But let’s postpone reason for a bit. Manmohan Singh Kapur and Subhash R Gupte were indeed long-serving members on a house of Kingfisher. They both quiescent in early Apr 2014. So let’s take a bank’s reason for a mistake pas on face value and assume that Kapur and Gupte were guarantors to a loan.
Immediately dual questions stand up: One, how come a bank did not have a hit sum of a guarantors and, two, how formidable would it have been to locate dual directors of Kingfisher Airlines even if a bank did not have their hit details? After all, both Kapur and Gupte are obvious professionals and are on a play of a purchase of other listed companies. Kapur late as CMD of Vijaya Bank and Gupte served as behaving authority and MD of Air India.
The subsequent doubt to ask is either Kapur and Gupte were guarantors to a loan. It took usually a few calls for Firstpost to get their hit details. And what they told Firstpost turns a whole story spun by BoB on a head.
Both Kapur and Gupte vehemently denied that they stood pledge for Mallya’s loan. Gupte pronounced a loan was given opposite Mallya’s personal pledge and that of United Breweries.
Listen to this brief review between Firstpost and Kapur:
Gupte was some-more forthcoming:
The import of this is that BoB froze 5 accounts (owned by 3 sell customers) mistaking them for Kapur and Gupte, a dual guarantors of Vijay Mallya’s Rs 550 crore. But Kapur and Gupte are not guarantors during all!
Unless a bank knows something Kapur and Gupte don’t know about themselves, here’s what it looks like: The bank mistook not usually 3 sell business for dual guarantors for a outrageous corporate loan, though also mistook who a guarantors were!
Simply put, BoB does not even know who a guarantors are for Vijay Mallya’s loan of Rs 550 crore.
The “technical error” counterclaim of BoB is clearly not enough. Two vicious questions need to be answered by a bank:
1) If Kapur and Gupte were “thought” to be “guarantors” to Mallya’s loan by trait of being directors on Kingfisher Airlines, what about a rest of a house members. At a time of a loan, there were 7 directors on a house including Mallya. So what about a other 4 directors? Has a bank attempted to solidify their accounts too?
2) Both Kapur and Gupte have told Firstpost that they do not bank with BoB. Then, what is all this bitch about? If conjunction of them had an comment with BoB, what is a basement of a solidify list (which was ostensible to be a list of accounts owned by a two)? What is BoB perplexing to solidify then?
These are usually dual of a many questions that lift critical concerns about a systemic abuse of open money. Every sell patron knows a rigours by that they are put for tiny personal, vehicle, preparation and home loans. This BoB box inadvertently reveals that all that due industry is indifferent usually for a farmer, a confidence ensure and a unfeeling vendor. That’s what we will understanding with in a subsequent partial of a series.
With inputs from Sanjay Sawant and Shishir Tripathi
This is a fourth partial of a array that aims to demeanour during how outrageous corporate loans are doled out but due diligence. By highlighting all a horrors committed by Bank of Baroda in frozen a comment of a farmer, a confidence ensure and a unfeeling vendor, it seeks to 0 in on a complement abuses by banks in extenuation corporate loans. This array attempts to give we a sight into because and how NPAs are combined and because Finance Minister’s Arun Jaitley’s offer — to ring-fence banks from rapist review for entering into “commercially prudent” settlements — should be extended intensely prudently.