State Bank of India Borivali (West) Branch — PPF ACCOUNT IN CASE HUF
A-503 Madhuban, Opp Dev Nagar
New Saibaba Nagar,
Kandivali (W) Mumbai - 400 067
State Bank of India
Agora Plaza First Floor
S V Road SHOWCAUSE NOTICE
Borivali (W) Mumbai – 400 092
Email : email@example.com
REF: BABOOLAL SARIYA HUF A/c No 101153666211
Our letter dated 4-5-2010 filed on 5-5-2010
SUB: Showcause Notice
With reference to above I would like to state as under:
1) I was holding PPF account in the name of Baboolal Sariya HUF A/c no 101153666211 at State Bank of India Borivali (W) Branch where the account has completed 15 years on 31-3-2008.
2) The bank has credited interest even after expiry of 15 years, 2009 and 2010 the interest was credited in my HUF Account. The total interest amount was Rs.2,10,445/- (Rupees Two Lacs Ten Thousand Four Hundred Forty Five only). The total balance outstanding as on 31-3-2010 Rs. 15,17,096/- (Rupees Fifteen Lacs Seventeen Thousand Ninety Six only).
3) The account was closed on 19-4-2010 the pay order of Rs. 13,06,651.76 (Rupees Thirteen Lacs Six Thousand Six Hundred Fifty one and Seventy Six paisa only) after reversing the interest Rs. 2,10,445/-.
4) I have made an application under Right of Information Act 2005 on 15-5-2010 and no reply has been received but the reply was received in case of Dinesh Joothawat on 3-6-2010 vide letter dt 15-5-2010 RTI/R/III/0896 by Mumbai administrative office Worli Mumbai – 400 018.
5) It may be noted that the interest was credited to the all HUF account holders which you are not brought to the notice of branch since 2005 as well as no adverse remarks has been made on the audit report.
6) It may be further noted that the branch has accepted the PPF deposit even after accounts continued after expiry of 15 years in case of HUF accounts.
7) The branch has claimed that no interest can be provided after completion of 15 years as per circular
“As per Cir No GBD/RMS/07 and as per Govt Cir No FO/GOVT. BUSINESS/05-06 dated 30-6-2005, the accounts, if any, opened by juristic persons other than individuals on or after 13-5-2005 under any of the small savings schemes including PPF scheme 1968, shall be treated as void ab initio and no extension will be allowed to the accounts opened prior to 13-5-2005 and the deposit will be refunded without any interest to the depositors.”
It is noticed that the branch has provided interest even after expiry of 15 years in case of HUF account holders of whole branch at the end of 31st March of every year.
The showcause notice hereby given to explain the followings:
1) Why your branch has accepted the subscription even after the completion of 15 years in case of all HUF account holders?
2) Why your branch has accepted the subscriptions even after 15 years in case of HUF, why it is not refunded immediately or transferred in suspense account?
3) Why your branch has credited interest in the case of HUF to the all account holders who have completed 15 years?
4) Why the interest was not reversed immediately in case of March 2007 and it was intimated to the parties respectively?
5) Why your auditor’s has not reported the said irregularities in case of accepting the deposits as well as interest credited in after expiry of 15 years in case of HUF?
6) How the interest was received in hands of the account holder where no interest was provided by the Government as the circular you have taken the base?
7) Why the circular is not followed by the Bank and the individual responsibility is not casted to the branch explain in depth?
8) Why circular was not followed initially the loss of investors interest could have minimized initially and it could have closed earlier?
9) Why interest was not reversed before closing the PPF account?
10) Why the copy of circular was not forwarded to the individual account holder where the large money was lying carrying not interest?
11) Why the individual showcause notice not served before reversing the interest to the individual account holders observing the Law of Natural Justice?
12) Have PPF saving scheme 1968 has conducted any audit during March ending 2005 to 31-3-2010 in your branch?
13) Why your branch has reversed the interest after expiry of four years from date of credit to the individual account holders?
14) Is there is any norms or time limit of reversing the interest which the branch was knowing the facts?
Please note that, if I don’t received interest Rs.210445/- (Rupees Two Lacs Ten Thousand Four Hundred Forty Five only) within 7 days as well as satisfactory reply of this showcause notice I shall compel to move to Reserve Bank of India (RBI) for your Review Audit of your branch for the years March Ending 2005 to 31st March 2010 looking the public interest in large and mismanagement of funds. Further, complaint to PPF Small Saving 1968 department Government of India.
1) State Bank of India
Mumbai –III Madoli Building Worli
2) Zonal office State Bank of India
3) GM – State Bank of India Head office
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