[Resolved]  State Bank of India — fraud auto loan at SBI

Address:

South 24 Parganas, West Bengal

The Chairman
State Bank of India
State Bank Bhavan
Madame Cama Road
Mumbai- 400021.

Dt: 25.9.2012
Respected Sir,

FRAUD PERPETRATED BY AGM(PBBU), SBI LHO KOLKATA IN CONNIVANCE WITH CGM, SBI KOLKATA CIRCLE

It may be reminded to you, that CGM Kolkata Circle, Sri Surinder Kumar & CDO Sri MV Narayana are both on the verge of retirement. So, they are now least bothered about the functioning of the LHO.
Now a few top officials like Sri. Chanchal Kumar Mazumdar, AGM(PBBU) taking advantage of this lack of effective supervision, has resorted to various corrupt practises. Sri Mazumdar, is quite well known in the circle for his fondness of receiving various favours from a few car dealers in and around Kolkata. It is beyond any logic that on what consideration, such a person of doubtful integrity was chosen by Circle Management, to head such a sensitive department like Personal Banking.
Recently (for last 5 days), this Chanchal Mazumdar, has sought help of around 33 Trainee Officers & Probationary Officers, for so-called sourcing & scrutinizing loan applications, from a few selected car dealers. Now, this entire process has been conducted WITHOUT ANY WRITTEN COMMUNICATION WHATSOEVER !
It may be referred to that very recently one Chief Manager at MPST, JeevanDeep, Kolkata was charge sheeted, on account of fraud pertaining to car loans. It needs to be immediately investigated that whose interest it serves by this VERBAL DEPLOYMENT of 33 Trainee Officers & Probationary Officers.
It has come to light in course of our dealings with car dealers that the modus operandi of this Chanchal Mazumdar is as follows:
1. In collusion with a few dishonest car dealers, this Chanchal Mazumdar coerces a few staff members at MPST, Jeevan Deep to fraudulently draw loans on vehicles purchased by customers on cash payment after generating fake invoices using engine & chassis numbers and insurance policies of the already sold vehicles and getting them registered with Regional Transport Authority using fake addresses and photographs.
Now, Chanchal Mazumdar has entrusted a few inexperienced trainee officers/staff who are still in their probation period to do the verification & processing of loan applications! These newly recruited staff members are no way equipped to handle these highly fraud-prone functions. They are also not supposed to do the processing of loan applications at car showrooms, as per bank’s rules & procedures! All these have been done as eyewash to cleverly bypass bank’s procedures.
As a consequence of these dubious activities, a few innocent newly recruited staff members will get falsely implicated, where as some habitually corrupt senior official like Chanchal Mazumdar will go scot-free.
Here it may be mentioned that offices of this Chanchal Mazumdar and CGM, Kolkata Circle are located on adjacent floors at Samriddhi Bhawan, Kolkata. Some genuine and loyal customers of the Bank have already reported these incidents to Shri Surinder Kumar, CGM. But no corrective action has been initiated by Circle CGM. Thus the integrity of Shri Surinder Kumar, who is about to retire in November, 2012 is not beyond doubt.
2. Chanchal Mazumdar along with a few of his accomplices at MPST, Jeevan Deep, Kolkata regularly inflates the loan amount, and earns a commission from dealers on the inflated portion.
These activities spread a bad message about SBI, among its customers and consequently market share of SBI is diminishing in the various personal loan segments.
Another accomplice/agent of Shri Chanchal Mazumdar posted at LHO Kolkata is Sri [censored]angshu Shekhar Chakravarty. He was engaged by Shri Mazumdar to verbally communicate with trainee officers. During the period of 17th & 18th September, 2012 all the 33 new recruits had received calls from one Vodafone Number ([protected]) for so called training at Car Showrooms for a few days! All the calls were made after or before office hours which can be easily verified from call records. During the course of conversation over phone this SS Chakravarty, had always avoided the actual purpose of this deployment and also denied to issue any written communication.
All these turn of events are self-revealing in nature. A vicious gang is operating at LHO Kolkata for eventual benefit of a few dishonest car dealers, at the cost of the bank and its customers. This gang in now trying to implicate a few new recruits (totally unaware of these activities) in their crime.
Lastly, a few of these young staff members of SBI have received threats from rival car dealers, which has caused fear and anxiety apart from grave security issues. Safety concern of young recruits was communicated to circle management, but no action has since been taken.
In terms of bank’s rules & regulations Probationers should be posted at Branches and not car showrooms. In the best interest of the bank and also of the new recruits, immediately return all the 33 PO/TOs to their respective branches, for completion of their training. Also activate the Circle Management at LHO Kolkata, to keep a close watch on the activities of individuals like Chanchal Mazumdar [AGM(PBBU)] & SS Chakravarty.
Since, security concern is paramount and also chances of perpetration of fraud is high, stern legal measures will be initiated against the bank, if no action is initiated at the earliest.

Yours faithfully,

Md. K. Ali
Howrah ZO
SBI Bengal Circle.

Copy to:
1. The Governor, RBI.
2. Central Vigilance Commissioner, CVC New Delhi.
3. The Secretary, Department of Financial Services.
4. The Commissioner of Police, Kolkata.