Ripples Advisory, Arrest of BoM brass: Bankers on the warpath, may meet govt on witch-hunt
Sources said bankers held discussions with Devendra Fadnavis late Friday night about the arrest of BoM executives
Bankers have decided to unite and fight back against “arbitrary arrests” and “harassment” by probe agencies, in a move that comes against the backdrop of the arrest of the CEO and other senior executives of state-run Bank of Maharashtra.
In an hour-long meeting on Friday, the Indian Banks’ Association (IBA), the apex banking lobby, decided to meet senior government officials next week and present its case. V G Kannan, CEO of the IBA, said the association would provide legal assistance to the embattled bankers even after their retirement.
Bankers suggested that the association set up an independent committee comprising senior bank executives to look into the probity of allegations levelled against banks. This panel could be consulted by law enforcement agencies before taking any punitive action, they said.
The country’s top lenders strongly protested the sudden arrest of Bank of Maharashtra MD and CEO Ravindra Marathe, Executive Director R K Gupta and Zonal Manager Nityanand Deshpande in connection with a soured loan given to real estate developer D S Kulkarni. Among others arrested were the bank’s former CMD Sushil Muhnot, Kulkarni’s CA Sunil Ghatpande, and Vice-President of the engineering department of Kulkarni’s firm, Rajiv Newaskar.
Sources said bankers held discussions with Chief Minister Devendra Fadnavis late Friday night about the arrest of BoM executives. The department of financial services is also looking into the issue.
The Economic Offences’ Wing of the Pune police had arrested Marathe on Wednesday morning when he was returning from Yoga classes. Kannan said the bankers were not given any notice. They were presented before the court and straightaway arrested under the Maharashtra Protection of Interest of Depositors (MPID) Act, he said.
However, the “Act is not applicable for bankers,” he said, adding that according to the Reserve Bank of India (RBI) guidelines, “any loan fraud of above Rs 2.5 billion has to handled only by the Central Bureau of Investigation. We are unable to understand how arrests have been made by the state police.”
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