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Indians banks running a parallel legal system


Indians banks went overboard - while handing over money and while extracting money!

Indians banks went overboard - while handing over money and while extracting money!

A room full of some 70,000 fake Non-Bailable Warrants NBW is being scrutinised at the court. Officials … have found fake seals of judges’ signatures, and cooked-up court papers. A bank-court staff ring used these papers against clueless borrowers of ICICI Bank, Kotak Mahindra Bank Limited, Cholamandalam DBS Finance Limited, Reliance Capital and HDFC Bank, among others. Another major fraud is that most of the accused are not in Bangalore. Many live in cities like Kolkata, Chennai, Hyderabad, Mumbai, Allahabad, and in remote corners of Jharkand and Bihar. The story unfolded after many such harassed customers complained to the court, sources said.

The scam has shaken the judiciary in Karnataka. One source told this journalist that an advocate had filed 30,000 such cases allegedly on behalf of Cholamandalam DBS Finance in the last six months. An advocate reportedly representing Kotak Mahindra Bank has filed around 10,000 fake cases in the last six months.

The preliminary inquiry has revealed that advocates representing many banks, in collusion with court staff, have created their fake stationery for preparing the orders.(via Banks, court staff fake judge’s orders, News – Latest – Bangalore Mirror,Bangalore Mirror).

A Gurumurthy, the judge in whose court a scam involving court officials, banks and financial institutions to the tune of hundreds of crores of rupees was unearthed, has been transferred. It is feared that with the transfer of the judge, the departmental inquiry would suffer.

Some 70,000 fake NBWs were said to have been issued in the last three years to people across the country. Three officials of the court – Tulasamma, the sirastedar, Balasubramani, the bench clerk, and Narasaiah, a case worker, who allegedly ran a ‘parallel court’ in collusion with banks and their advocates, were suspended. (via Whistle-blower shunted out, News – City – Bangalore Mirror,Bangalore Mirror).

Bad news first

Apart from the Times of India group, no one else seems to be covering this issue. National TV channels have been quiet on this. Strange! How come no one else is reporting on this?

Who has issued the gag orders?

Then comes worse news

Is this how bankers are these days?

Is this how bankers are these days?

2ndlook has been flagging, for the last 1 year, how the concentration of power is leading to abusive behaviour by India’s corporate sector.

This is especially true with the newly opened economic sectors like banking and telecom.

This incident is not a financial scam as is being shown in the news report – but an abuse of financial power. Not surprising, how the corporate structures make abuse of authority easy. India’s newly opened economic sectors like banking and telecom have yet to develop their weak and flaccid ethical muscle.

This is particularly tragic, because Indians across the world have the highest faith in their corporate institutions. To find their faith abused in such fashion is shameful.

Though I find it hard to believe that Indian public sector banks seems like a so much better choice – when compared with private banks that follow such sharp practices!

  1. pravin
    May 22, 2010 at 4:21 pm

    telecom ?really. i thought it was a success story in india.it is the corporates who are bleeding and the consumers are having a boom time.where can you get calls at these rates?perhps only in somalia where the taxes are zero because there is no govt.

    fiat money creates a bunch of elite banksters who get to lick the cream off the top.it is expected.explains why asset/paper shufflers get paid a lot.it is not from serving customers,it is plain loot.

  2. May 24, 2010 at 6:31 am

    I think the telecom industry has been a success. The corporates are also not bleeding! GSM telecom companies have been seen fabulous valuations and returns for both share-holders and promoters.

    And the consumer has seen benefits, too! I have not seen too many losers in telecom business!

    That said, the telecom industry has its seamier sides – a part of the broader trend. Let us not throw the baby out with the bathwater.

    Fiat money has its ills. I think the clear, simple answer is broad ownership of gold, for storing and conveying capital value. Unfortunately, people outside India do not seem to value gold!

  3. A fan of your blog
    May 24, 2010 at 11:07 pm

    Anuraag Sanghi :I think the telecom industry has been a success. The corporates are also not bleeding! GSM telecom companies have been seen fabulous valuations and returns for both share-holders and promoters.
    And the consumer has seen benefits, too! I have not seen too many losers in telecom business!
    That said, the telecom industry has its seamier sides – a part of the broader trend. Let us not throw the baby out with the bathwater.
    Fiat money has its ills. I think the clear, simple answer is broad ownership of gold, for storing and conveying capital value. Unfortunately, people outside India do not seem to value gold!

    The problem with gold is its relative lack of liquidity.

  4. May 26, 2010 at 1:19 pm

    The problem with gold is its relative lack of liquidity.

    Sir /Madam – How much of gold, where and when do you want to sell! Are you aware that the US Mint has not been able to satisfy demand for gold coins for nearly a year now!

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