Hi
I am Satnam Singh Wadhwa from SBH and know a lot of serious scams,frauds and corruption activities going on in SBH by senior officials who have assets worth crores of rupees which are bought out of money taken as bribe while disbursing loans and many other illegal means. Such people are difficult to nab until and unless someone who has a close observation , comes forward. to protect the interest of the depositors/public and aboveall the nation as the funds/money siphoned from the Banking system through corruption and other means, pertains to these people. Towards this end , I collected a lot of information and many cases were studied by myself which noone can challenge in this world as these are based upon facts and evidences, were brought to the notice of CBI ( 17 months ago but till date no action has been initiated against any one and a copy of the letter is attached herewith for your perusal), Government, Ministry of finance, cvc, RBI etc. but unfortunately everyone is become a silent spectatator. But it is ultimately the depositors/public which will suffer severely and lose their deposits if appropriate action is not taken by them. So to protect and caution them, I am enclosing the letter which is self explicit.
Thanks a lot
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From:
> Satnam Singh Wadhwa
> Hyderabad-500029
> Date: 3-5-2008
> The Director,
>Central Bureau of Investigation
>New Delhi
>
>Reg. Complaint regarding scam/frauds/bribe etc against top officials of SBH
>
>1. I am Satnam Singh Wadhwa from State Bank of Hyderabad and working presently at Technical Consultancy Department, Head office, Hyderabad. I had been victimized by the Bank during the year 2003 by fabricating a case/ hatching a conspiracy and the case was referred to CBI. My main fault was that I brought certain illegal activities taking place in the Bank, to the notice of Top Management which was not digested by them as a few retired General Managers were also involved. I had to reveal this information as I was being harassed by the Inspection/ Vigilance Department of the Bank on the instructions of Shri V.P.Singh who happened to be DGM(inspection) at that time and he was in dispute with my DGM, Delhi. As he could not say anything to the DGM, Delhi directly while auditing the Delhi Regional Office and Branches under its control, he preferred to harass the Branch Managers such as Chandigarh Branch, Panchkula Branch and Ludhiana Branch. Shri V.P. Singh took the assistance of Shri R.P. Handa in fabricating the case as Shri Handa was one of the customers of Ludhiana Branch who was involved in Hawala transactions and I closed his account. All other information is available with yourgoodselves.
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>2. I am writing this letter to bring it to your kind notice that the innocents are being torchered in the Bank and the real corrupt officials, persons involved in serious scams and frauds are going scot free. I have enough evidences to prove that the Bank top officials are involved in anti-national activities, anti- public activities, anti RBI/Finance Ministry actions/ directions. As per my assessment the Bank is a defunct bank with thousand crores of negative net worth due to actual losses if we go as per RBI guidelines in reality and the Balance Sheet of the Bank is also a fake/bogus one. Lot of scams are being suppressed by the top management especially wherever they are involved. Top management officials have crores of properties acquired by corrupt means.
>3. The actual non performing assets ( NPAs) are not less than 30% while the actuals are being shown as less than 1 % as hundreds of NPA accounts are being shown as standard ones while in reality they are non performing assets. I have given details of some accounts studied by me the details of which are enclosed herewith. Such accounts which are shown standard and excellent accounts in the Banks books are in really sick / defunct. For instance an account namely M/s sterling CNC Engineers (P) Ltd ( for details please refer exhibit-1)with SBH Gurgaon Branch shows the siphoning of funds to the tune of Rs.50.00lakhs for which additional term loan and working capital loans are recommended and when the facts were brought to the notice of the DGM, Delhi Regional Office, the account was closed immediately as fraudulent activities ( bogus stock statements, bogus balance sheets, bogus transactions,fake book debts against which bank has been financing to most of the borrowers on bogus chartered accountants certificate as I came to know on their actual verifications during my studies of such units etc) were taking place therein for which the Bank was very well aware of as siphoning of funds was permitted by the Branch Manager itself by allowing drawings through the account of the company for which the required cheques are available with the branch as evidence.. There are hundreds of accounts like this in the Bank.
> Another similar account i.e M/s Dairy Craft (India) Pvt. Ltd( please refer exhibit-2)which is excellent as per banks books, was having bogus balance sheets, siphoning of funds more than Rs.40.00lakhs, bogus stock statements, excessive credit limits etc. and still this account is continuing with SBH, Chandni Chowk Branch, Delhi but enhancement in credit limits was not sanctioned after I brought these facts to the notice of bank executives in my report. In a nutshell when this is the position of standard accounts as classified by the Bank, one can imagine the fate of other accounts of the bank. Thus a big racket is going on in this bank and all the rules and regulations of RBI / Govt. are flouted by the Bank to sanction loans to such accounts which are becoming NPAs subsequently as end use of funds are not seen at all and the fake statements are kept on records for show purpose. Only.
>4. Another - national activity which results the nation a loss of crores of rupees as non receipt of income tax because the bank encourages/ motivates those people whose earnings are good but are not paying and do not want to pay income tax and are not filing income tax returns and intend to avail term loans against properties. To encourage such people, Bank evolved a scheme where no income tax returns or any other proof of income will be asked from the borrowers and loans upto Rs.100.00lakhs can be sanctioned merely against the value of property and loan amount can go upto 50% of the value of the property. Initially the loan amount was Rs.10.00lacs but of course the response was good and the bank enhanced the loan limit. About Rs.6000 crores of loans have been sanctioned under this category during past 2 years and one can imagine the loss of income tax to the Govt. due to the wrong policies of the Bank. And moreover such accounts are classified under priority sector advances and thus depriving the real and genuine small borrowers from their rights as they do not have properties and thus denied loans. More than 35% of such loans are virtually non performing assets as the balance sheets of such accounts are bogus. For instance the loans sanctioned against properties is being shown as working capital for SME advances while the stocks are not available in reality or small quantities are available as the loan amounts are withdrawn from the business and thus the borrowers have to forcibly go for fake financial statements and the bank closes its eyes and virtually the accounts should be treated as NPA as per guidelines. Recently one study conducted on M/s Shubh Mangla Industries, Bangaluru , account with SBH Rajajinagar Branch, has shown the same thing and when the facts were brought to the notice, the account was closed immediately. I also enclose the Banks revised guidelines (exhibit-3) for enhancement in credit limits upto Rs.2.00crores which is self explicit as to how the RBI directions for monitoring of advances, end use of funds, need based finance, collateral free loans upto Rs.5.00lacs, waiver of stock statements etc. resulting into the accounts to become NPAs over a short period of time as mentioned in above case of M/s Shubh Mangla Industries,having account with SBH, rajajinagar Branch.
> I also enclose a letter (exhibit-4)addressed to the AGM by one of the Branch Managers which is self explicit and indicates as to how SBH intends to sanction loan against properties without caring for sales turnover. This also shows that the sales recorded by them in their books are only 10-20% of their actual sales due to VAT 6% and other problems. This clearly indicates that as to how the Bank is playing a major role in the destruction of national revenue collections and spoilage of the monetary process of RBI/Govt. In fact most of the cases are alike.
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>5. About 25 % of the Small Scale Industries accounts are not SSI at all as those are become medium enterprises but the bank since years is showing such accounts as SSI only to satisfy the bench mark for priority sector advances. About worth Rs. 135 crores of advances to medium enterprises category were intentionally were shown as SSI despite the instructions of statutory auditors on the written instructions of top management. Similarly about Rs.400 crores of advances to warehouses ( medium enterprises) are being shown as SSI. About Rs.65 crores of advances in medium category are being shown as SSI units for the same purpose in Mehbubgunj Branch, Hyderabad. There are so many other accounts like this in different branches which are classified as SSI units knowingly to achieve the bench mark and save from the imposition of penalty.
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>6. About Rs.40,000/- crores of medium and large category loans are sanctioned by the credit department, H.O. of the Bank The quality, monitory of advances, end use of funds will show as to how many accounts are really bad. A recent study conducted by me for M/s Godavari Polymers (P) Ltd, an account with our Commercial Complex Branch, Secunderabad shows the level of manipulations/ fabrications and banks control. This account is excellent and standard as per banks books but my observations were as follows.
>(i) The account was enjoying Rs.3.50 crores of cash credit limits and now the credit limits were enhanced to Rs.8.00crores ( only for cash credit account as total limits are about Rs.16.00 crores). As per my report if we go as per banks guidelines the unit does not get any limit and the details are enclosed herewith as exhibit-5 So one can imagine the fate of the bank and the level of manipulations for which bank is also a party and crores of loss to the nation in different forms and deposit holders in particular as they are the ultimate.
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>7 . As per my assessment, there is an average loss of at least Rs.65.00 crores every year to the bank due to manipulations / fabrications of bills, unauthorized payments, adjustments due to -utilization of banking machinery especially by the top management of the bank. Some instances are furnished below.
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>(i) Loss of Rs.8.00crores is due to unauthorized payment to the water boys / the persons appointed unauthorized at branches/controlling offices of the bank , to whom the salaries can not be paid but their services are utilized unauthorisedly with the knowledge of the bank and payment is made by raising bogus bills, bogus petty cash and monthly wages are paid to them. There are one/two such fellows in each branch and each person is paid Rs.3000/- to Rs.4000/- every month. This estimates to about Rs.8.00 crores of loss to the Bank.
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>(ii) There is a loss of about Rs.10.00 crores of loss to the Bank every year due to the payment of petrol charges to each officer while the average expenditure of each officer is not more than Rs.1000/- per month and the reimbursements are made on bogus bills. Thus one can imagine as to how the public money is mis utilized.
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>(iii) Crores of rupees are disbursed to the officers of the bank on the same furniture & fixtures on the bogus bills supplied by say at H.O by M/s Karthik Electricals and M/S Pasa. The former supplies electrical items bills and the latter supplies furniture item bills when both of them have no showroom /shops except the note books of fake bills and they charge 3-5% as commission for supplying bogus bills with the knowledge of top officials and the commission amount is shared upto top executives. This is happening at H.O. level for the last many years. Also recently computer loans were sanctioned on the bogus bills supplied by M/s Bharat Data Products a bogus company who charged Rs.500/- for a quotation worth Rs.50000/- All the sanctioning authorities and auditors are well aware about these facts. There are so many happening like this with the knowledge of the top officials under their nose.
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>(iv) Mis-utilization of banking machinery is a common thing i.e. whether cars, guest houses, training centers, lightning arrangements or any other expenditure. Recently on the marriage occasion of a daughter of top official, the above facilities were completely mis-utilized without any payment and lakhs of rupees spent were paid via bogus bills by debiting to bank account.
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>(v) The level of corruption at higher cadres is so high that one of the honest and retired MD said once that he was offered gold bricks for sanctioning a loan of Rs.2.00 crores. They have a lot of properties too and the real corrupt officials are going scot free and innocents are victimized and the same thing has happened in my case too as I endeavoured to arrest the corruption and they made me victim of that and I am enclosing the letter after which I was made a pray and the contents of letter are crystal clear.
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>(vi) Not only this even the top executives are joining certain companies after retirement as director immediately to facilitate sanction of loans and ease the operation of sharing bribes and thus many accounts have become defunct and in certain cases bank has lost as high as Rs.32.00 crores in an individual case. And many accounts are like this. In Delhi, Chandni Chowk iSBH Branch itself bank lost Rs.40.00crores within two years in two accounts namely M/s Raj Solvex Rs.32.00crores and M/s Century Proteins Ltd Rs.8.00 crores where two retired MDs joined as directors and rest is the history.
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>7. Banks own circular guidelines state that many accounts are very serious and no action is taken against anyone while I had been torchered for doing good business by bringing a loss making branch to excellent profits and saving the branch from closure. As evident from the circular that even IT returns are not obtained, legal opinion reports not obtained,even title deeds were found fake,no assessment of loan as IT returns are not obtained and loans sanctioned without any basis, no mortgages created and so on and even then no action was taken against them. I tried to safeguard the interest of the Bank and I was victimized for no faults of mine.
>
>8. Top Management have been protecting the real culprits despite I have told about a few officials such as Shri Rajesh Kumar earst while Field Officer, Ludhiana Branch and Shri Ravindra Kale, ex Branch Manager, Ludhiana Branch. The information sought by me about these officials under right to information act 2005 is not furnished despite their scams and cheating the Bank to the extent of Rs.14.00lacs and other losses mentioned therein.( Please refer exhibit-6 and exhibit-7for details where I sought information under RTI act and Banks incomplete reply attempting to protect the criminal elements) And instead of initiating action against them, simply it is replied that verification auditor has not mentioned anything about the income leakage while hundreds of vouchers are available in the branch as an evidence but the attempts are being made to protect the criminals and cheats which also encourages others to resort to such activities. Moreover verification auditor is also a human being and can commit mistakes and there is nothing wrong in cross verifying the things if someone has given important information in the interest of the Bank and the public. Similarly Shri Ravindra Kale ,when he was as Branch Manager at Pune Branch, SBH sanctioned one housing loan to one borrower on the fake title deeds and the same person had also taken another loan from SBI also and both became defunct as the borrower was not traceable and repayments were not forthcoming. Please see as to how the management has saved Sri Kalethey have obtained a letter from the successor of Sri Kale that the title deeds are genuine and the case was closed forever while the facts are entirely different. I brought this information to the knowledge of top management but no action was initiated against him.
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>9. In a nutshell, the above facts are not even the tip of the iceberg and if you really want to save the Bank, public interest and the nation, Sir, you must do something immediately that will be the real service to the nation and the public at large and the lesson to the real corrupt officials.
>10. In addition to the above, certain benefits are extended to the persons known to them. As in the past certain officials who are having their house at Hyderabad / Secunderabad are extended leased facility by the top executives as against the contravention of the rules and regulations of the Bank extending a benefit of about Rs.[protected] per month while the other similar cases had been denied such facilities.
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> Thanking you,
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> Yours faithfully,
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> Satnam Singh wadhwa
Aug 13, 2020
Complaint marked as Resolved 
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We apologise for the inconvenience caused.
Please approach State Bank of Hyderabad regarding the discrepancy. We'll extend our full co-operation in resolving the issue.
Regards,
ICICI Customer Service Team.