| Address: New Delhi, Delhi, 110018 |
Part-1
Reg. : complaint against sbh and sbi
This has a reference to my complaint against the abivesaid banks through emails dated october 2016 and
Your response to that.
Seeking hard copies of the complaint.
In this regard, i would like to mention that i am an ex-employee of sbh and whatever i have stated in
My complaint are just a
Few illustrations only and the facts are much more serious and alarming as far as corruption, frauds
And scams in sbh are
Concerned by its top officials from the year 1995 onwards. Firstly a brief about/overview is given
Which is followed by the
Detailed information and it is infact already was emailed to you.
1. The bank top officials especially sbh are mainly responsible for at least 30-35% of the npa/losses
To the bank due to
Corruption and scams where the medium and large quantum loans are sanctioned in a planned way to cheat
The bank/public
Money only which will be clear from my detailed information as these instances have happened and are
Known to many officials
In the bank and i have studied more than 350 loan proposals and i know as how the financials of the
Companies are
Fabricated/manipulated by the companies/chartered accountants in nexus with top officials which account
For a major chunk of
The npa accounts in addition to the genuine npa accounts.
2. Banks know and are responsible in many cases of hawala transaction cases and i exposed them in one
Case of ludhiana
Branch with mr rajesh kumar as field officer.
3. Bank has promoted many officers who made the bank to lose a lot of money where even properties taken
As collateral security
Were found to be fake/bogus and i reported a few cases to the sbh, rbi but all in vain and there are
Many such cases in the bank
And it is losing a huge money every year.
4. Crores of rupees every year are spent by raising bogus bills by the branches, controllers and head
Office officials
5. Crores of rupees are being paid unauthorisedly every year to the temorary staff not shown in the
Records and against the rbi
Guidelines by appointing 1-2 staff on temporary and unauthorised basis.
6. Banks retired md, cgm and gm join after retirement many companies to facilitate enhancement in loans
And pass on the
Bribed money to the sanctioning authorities and many such accounts have become npas and bank lost huge
Amount in such
Cases. About rs 38 crores were lost in chandni chowk branch where two mds had joined two different
Companies after their
Retirement as directors against the rbi guidelines and bank paid a high price for it and there are many
Such cases in the bank
Where crores of rupees are being written off every year and it is happening in almost all the big
Branches of sbh which might be
True for sbi too.
7. The bank has lost a huge money in npas recently and the actual amount is much more than this which
Will be
Exposed/reflected in near future and if the control over such issues of corruption is not
Excercised/guilties/criminals are not
Punished such things will continue forever and the honesty of such top officials every one in the
Country has seen in
Demonetisation.
8. I was also in a team of three officers who had undertaken study of npas in the banks a few years
Back and found serious
Irregulaties/gaps/flaws/wrong appraisals etc which are responsible for major npas and you can see the
Npa files which will tell
Everything.
9. The nexus between the top officials and officer's association is another serious area responsible to
Encourage corruption as
Officers associations also settle many such cases of officers after taking a huge money from them and
One mr harshvardhan (
Chairman/secretary of officers association) is such a person who has acquired a lot of assets by such
Means.
10. Bank top officials acquire a lot of assets after retirement and most of gm and md belong to this
Category as corrupt money comes out after retirement which you can verify on selective basis as the
List is very big as most of top
Officials are involved/are corrupt and have taken gold bricks/flats etc in big loans and even one of
The most honest md mr
Mehrotra used to tell that he was offered gold bricks when he was md but he never did any wrong
Thing/sanctioned wrong
Loans but others are doing so. Mr lal used to take one flat for the home loans sanctioned to the
Builders for residential projects
And for other loans too. Mr khandelwal, md was also most corrupt and has a lot of properties in delhi
And punjab etc. Mr
Ramanujam was another corrupt official who even spent rs 25 lacs on a hanuman temple in his house at
Banjara
Hills, hyderabad and these are just not even the tips of iceberg. Amitab guha was another corrupt md who
Openly misused
Banking machinery, staff on the ocasion of his daughter's marriage and used training
Centre, food, cars, officials for many
Days, guest houses freely and more than rs 10 lakhs were spent by bank for him unathorisedly and how
Much money he might
Have taken for sanctioning loans and one loan case from chennai had come through retired cgm, shri
Ganeshan for rs 20 cr
But the need based loan requirement arrived at rs3.5 cr and he called me too for discussion and put
Pressure for giving the
Appraisal report for rs 20 crores but i did not agree to that as my report was based upon facts and
They were after me and
Hatched a conspiracy against me and spoiled my career for being honest. List is exhaustive and the
Factual position is very very
Grim and if this continues, the public money will be eaten away by these termite type top officials in
Future too. These are only a
Few instances as there are many such instances in each individual case and they are realy very
Characterless too and one will be
Shocked to know about it as what happens in five star hotels, guest houses, bank premises and liason
Officers can give the full
Details and this list is also too big.
11. A big racket is going on in the housing loans sanction as i have mentioned for delhi which is
Applicable for sbh and sbi for the country as a whole under the directions of top management of the
Banks.
The details are given hereunder.
—
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.
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.
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.
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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
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.
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.
thanking you,
yours faithfully,
satnam singh wadhwa
—
To continue as part-2
State Bank of India [SBI] customer support has been notified about the posted complaint.
Oct 06, 2017
SHYAM DEO NONIA's response Sir hmare pas 1 or 2 ka coin nhi liya ja rha hai chif manejar bo le nhi lenge apko jha jana hai jao hme koi kuchh nhi bigad sakta
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