State Bank Of India [SBI] — corruption - part-2

Address:

New Delhi, Delhi, 110018

Part-2

Reg. Complaint against sbh ludhiana branch manager (Earstwhile) and 4 others for their
Indulgence in corruption, frauds, scams

This complaint pertains to shri shiva swamy and shri rajesh kumar while they were working
In
State bank of hyderabad, ludhiana ssi branch as branch manager bm and field officer fo.
Both
Of them were involved in corruption and frauds and despite that they are getting
Promotions
Rather punishment for cheating the bank and its clients for years due to their some
Godfather. The list is very big and i have just given some instances. Loan of about rs 60
Lacs
Was sanctioned to m/s sigma exports international, ludhiana which was engaged in export
Of
Cycle parts. The unit sent first consignment to indonesia against the bank norms, rbi
Guidelines and ecgc norms. As exports were not permitted to this country and thus ecgc
Cover
Was not available, despite that the goods were allowed to sent by bm and fo for huge
Bribe as
The unit was new and thought they will get better price. The goods reached malaysian port
But
The borrower thereat did not pay money and after reasonable time the customs authorities
Had
To sent the documents back and bank lost the complete money and goods got rusted and
Still
Lying there or thrown thereat as demurrage charges were so high. Bm and fo kept the
Papers for
One year in their drawers and did not bother to inform the bank controller at delhi
Regional
Office and rbi despite the guidelines to do so immediately. It came out only in audit.
Bank
Lost the whole amount as ecgc cover was rejected for this country and the property
Mortgaged
To the bank as collateral security found to be fake which was also overvalued by three
Times
At the time of sanction of loan and at the time of recovery, the sale deed found to be
Fake.
No action was taken against these guys except they were rewarded in the form of
Promotions.
The facts were known to shri c. V. Ramana, chief manager advances, delhi regional office.
He has
Also protected these officials as he was equally responsible for the happening of these
Deeds.
I also told shri t. N. Prasad about this issue as he undertook audit of the branch after
These
Happenings but he also kept quite and failed in his duties intentionally and completely
And
Allowed the bank to suffer in future too. This also cast aspersions on his quality of
Audits
For other branches too. I agree that genuine mistakes will take place while working but
Hiding
Scams, frauds intentionally by auditors is too dangerous to express. Even dgm shri v. P.
Singh
Who was head of shri t. N. Prasad did not take any action intentionally as he was head of
Inspection department at that time. This has allowed these guys to commit further frauds
And
Resort to corruption in future too so only cbi investigation is must against all the five
Officers above.
Shri shiva swamy and rajesh kumar were also responsible for allowing hawala transactions
Worth
Humdreds of crores to
One of the exporter and importer and these officers minted money like anything and about
4
Raids were undertaken by dri amritsar regarding this unit.
In addition to the above facts, shri rajesh kumar took a lot of money from the clients to
Extend undue benefits and favours. Once the account of m/s sona plastics became npa due
To
Devolvement of lc and the unit was not cooperating, so regional office directed the
Branch
Manager and fo not to release the nargin money and adjust it in the account. But one day,
When
Bm was on leave, rajesh kumar released the money to the client after taking kickbacks.in
Another case he leaked the confidential inormation to m/s neelam steels for sake of money
.
The branch had a doubt that this unit is doind some hawala transactions and wrote a
Letter to
Nepalgunj custom authorities to verify the genuineness of documents but fo told this
Information to the party for sake of money as later on m/s neelam steels created lot of
Problems for the branch manager.
He took goods more than rs 50000 from ludhiana for his brothers marriage and the money
Was
Paid by the clients.
He invested the bribed money in his hotel at kulu.in fact he had a plan to buy one hotel
At
Kulu as one of the clients shri singla told me as rajesh kumar himself told him during
Discussions.
Many times he was caught extending benefits in bill discounting commissions by doing
Wrong
Computations intentionally so as to get money from the parties and once he went to
Amarnath
Yatra alongwith one client and all the expenditure was done by the client. While rajesh
Kumar
Took lfc amount from the bank and submitted the papers/tickets paid by client. He went to
Amarnath yatra alongwith one shri tarsem gupta, proprietor of m/s tridev industries who
Told
Me after a long time. If cbi investigation is conducted, many more serious things will
Come
Out. Otherwise bank will suppress this case.
I also request cvc to expedite the other complaints (6 nos) as the bank will dilly
Dallying
The issues intentionally. I am also in touch with rbi, finance ministry, supreme court to
Protect the national interest.

—
Case 2. This is a new case regarding ms darasha kumari when she was a branch
Manager in sbh narsing branch, haryana. She failed to create a valid and
Enforceable equitable mortgage of the property and put the bank in a loss of
Rs.3.00 crores in 1998 as the equitable mortgage was created on photo copies of
The property and original title deeds were not obtained. Instead of taking action
Against her, she was rewarded by way of promotion. Account became defunct and
Bank lost a huge money due to her negligence.

Case 3
Mr agarwal, m. D of sbh in the year 1997 sanctioned rs 3 crores just 2 months
Before his retirement to m/s raj solvex having account with sbh chandni chowk
Branch, delhi. After retirement, shri agarwal joined this co. As director as
Against rbi directions and within 2-3 years the loan amount escalated to rs.32
Crores. Mr agarwal was acting as a mediator between the co. And sbh top officials,
To facilitate sanction of loan and pass on commision to sbh top officials. Bank
Lost the whole money as the account became npa soon and nothing could be recovered
As rs. 80 lacs worth property taken as collateral security was also found to be a
Dharmshala at the time of enforcement and could not be enforced and bank lost the
Full amount. Simply branch manager was transferred and mr agarwal was told to
Resign from the co. So that cbi should not know about their nexus.
I will inform that this is one instance i have mentioned and most of the retired
M. D. S of the bank had been doing the same job and i have evidences for that too.
I know sbi chairman will also not take any action as it was referred to them also.
So is the case with cvc. And i can only trust only the honourable supreme court
Only to save and protect the nation and public from the clutches of these
Criminals.

Satnam singh wadhwa
—
Shri rajesh kumar erstwhile field officer, ludhiana branch for his involvement in
Hawala
Transactions alongwith the then branch manager shri shiva swamy for more than rs 100
Crores of forex
Transactions allowed through the branch and one case where bank lost about rs55 lakhs in
M/s sigma
Exports international as the fake collateral security in the form of property were taken
And loans

Were
Sanctioned and fema violations were permitted. This is only a brief and details are
Submitted to cvc.
(Ii) smt darasa kumari — bank lost more than rs 3.00 crores due to her negligence and
Original
Property documents were not taken and punishment was given in the form of promotion.
(Iii) shri ravindhra kale — he sanctioned housing loan to the same borrow of sbi who
Cheated both

The
Banks, no title deeds were available, no house constructed, borrower was also
Untraceable, case was
Dropped against him due to some presure from officers association.
(Iv) shri aggarwal and shri thanu pillai — both of these retired managing directors of
Sbh joined

The
Two different companies for facilitating loans by the top officials of the bank and took
A bribe and
Later on accounts became defunct and bank loat rs 32 crores and rs 8 crores in m/s raj
Solvex and m/s
Century oils ltd. And there are many cases in the bank like this.
There are many cases like this in the bank and these are only a few illustrations. Public
Money is at
Stake as these officers are eating away the public funds.
—
Egarding hawala transactions — a big issue
It is a big issue concerning the country and rbi also may be missing it in its audit.
Though the
Guidelines are there but not followed by many foreign exchange branches knowingly or
Unknowingly and
The result is this in all banks. Modus opearandi... Whereever the units receive full
Advance payments
And there the fake/bogus bills are prepared and some branches give the forex
Bills/documents to these
Companies on their request to dispatch directly where branches may not be knowing the
Consequences of
It.in some cases neither the goods are dispatched fully and documents are sent to buyers
As per
Understanding and in some cases these units have opened their offices/branch in foreign
Countries and
It is very simple as money comes in advance form but bills do not go back.in some cases
Fake

Documents
Are submitted where even some officials of customs are also involved. I have seen all
This and came to
Know only when i handled it practically and i reported the matter of shiva swamy and
Rajesh kumar of
Sbh ludhiana branch but the issue is closed by the bank and only my complaint to rbi,
They told a

Story
To rbi and issue is closed. This is not a case of one branch and it is happening to a
Large extent
Through out the country but rbi must take it seriously to ensure compliace of such things
And should
Not completely dependent on the banks as you have trusted a lot and they have taken you
And country
For a ride.
Media can also help in confirming all this by using their means.

I.
The list is very large and i can give only some instances which are just tip of the
Iceberg.
1. Shri r;nujam a retired cgm of sbh was aregular comer to delhi from 2000 onwards and
His call girls
Bill in five star hotels were paid by the then agm scope complex branch by debiting other
Expenses

Such
As under stationery and so on. This is just one instance for him and there are many
Instances like
This.
When corruption comes characterlessness follows it in most of the cases. He promoted one
Girl from
Sweeper to clerical cadre against the bank norms and every one knows about this case in
Bank.
2. One mr banejee retired gm was caught red handed in hyderabad guest house with two
Young girls and
This gm was bachelor.
3. Shri p; raman retired as gm and has a big history. Once he was went to poliuce station
When he in
Jaipur five star hotel eve teased a foreign lady in the swimming pool and this was a
Major issue in
Media.
4. One gm was caught red handed by sib dept. Officials in h. O.in day time i. E. Office
Hours with a
Lady manager.
5. Even a seniour laison officer used to say that your any problem will be resolved
Provided you
Arrange for wine and women for directors leave alone other officials.
6. One real estate manager used to supply call girls to top management. Some laison
Officers also do
This job of pimp for top officials.
This is the character of sbh top officials and if any one feels that this is not correct,
I will
Not only prove this but will give you many more instances like this. Why should i get
Embarrassed to
Write this when those whose are indulged into it, have no iota of shame.
7. One mr v. P. Singh who was deputed from sbp was most characterless and even his wife was
A drunkard
And a call lady. He was once caught even in a bid to rape his some distant relative and
You can think
What he has done for others.
J.
In continuation
I will mention some instances after the year 1998, however the list is very large as
Regards
Manipulations in sbh at various levels.
1. Manipulations in reporting and recordings in priority sector lendings. How bank
Officials inclusive
Of top management make fools to the government agencies in this area will definitely
Shock you as to
Whom you are trusting for years and they are fooling you and cheating the all concerned.
Sbh, mumbai main branch had been showing a few accounts worth credit limits of rs 135
Crores as ssi
Though it were c&i accounts despite the directions of auditors. Then in one year the
Branch manager
Complying to auditors advice, changed these account's status to c7i advances. And after
Some time the
Matter came to notice of top management in the meeting and they fires the concerned dgm
For changing
The status as it will reduce the priority sector lendings and ultimately the status got
Reversed to
Ssi. There are many cases like this still in this bank.
Similarly the advances to warehouses amounting to rs 330 crores were classified as ssi
Despite the
Auditors instructions to change it and here again top management came into picture and
Did not permit
To change the status from ssi to c&i.
Similarly in hyderabad, mehboobganj branch credit limits to c&i account was classified as
Ssi and
Chief manager (Sib) that time was deputed to change the status and to whom i also
Accompanied. Branch
Manager was fired on behalf of the top management.
I have seen many ssi units which went for expansion and even financials were indicating
C&i status
But these were classified as ssi.
There are instructiond from top management to show the achievement of priority sector
Lending by hook
Or crook. Approximately 25% of accounts (Value wise) may not be ssi but are shown as
Ssi. Which the
Government agencies will never believe but it is true,
2 manipulation of data had been a common issue since past years.
3. Similarly many real npa accounts are manipulated to show as standard assets by
Manipulating or
Permitting units to do so by inflating stocks or show very high number whether these are
Available
Thereat or not. Many cases belong to this category and with honesty if you classify the
Accounts,

There
Will be another 30 % accounts in the books of bank.
Satnam singh wadhwa

—
Regarding big housing loan racket by sbh and sbi in delhi and in fact throughut india.

Dear sir

I am satnam singh wadhwa had forwarded you 8 emails regarding scams, frauds and corruption in state bank
Of officials by its

Top officials worth more than rs 11000 crores with all the evidences and proofs but unfortunately even
After 8 years no action has

Been initiated against them despite more than 60 emails/reminders as if it is not a serious case for
You while you have been

Wasting your time in years for tiny fake and fabricated issues on behalf of the bank and remember the
Rules and regulations are

Same for all whether an individual or an institution and cbi just cannot be biased to one and against
To others under the same

Conditions. If cbi is biased for one then how the justice will be done and what will be the reputation
Of cbi in the world.in such

A serious case neither you have taken any action against the top officials of sbh nor you have
Responded to my emails since the

Year 2008 when i forwarded the first email to your hyderabad office. Remember cbi is not the king of
India and has to function

As per the constitution of india and if you are biased and not doing your duties as per rules of the
Land you are supporting the

Criminals and culprits then you are equally liable for punishment too so do not think yourself as god
And treat the bank top

Officials as criminals only who have cheated the public and it is still going on starting from sanction
Of high value loans without

Collateral security, manipulations of financials, raising of fake bills, even their call girls bills
Are paid through branches which i

Have seen myself.

So if you do not reply to my complaints within 4 days, i will be constrained to proceed legally against
All the culprits and who are

Protecting them i. E cvc, rbi etc and once this issue came to the notice of public, half of the indian
Banks will simply collapse

Within 2 days with multiple black spots on such controlling institutions. The honourable supreme court
Is already aware

About these facts. So if you want to maintain your reputation and dignity you must go ahead with
Investigation against such top

Officials and stop harassing the honest and innocent officials under duress from such officials. If you
Do your duties honestly

About 95% officials of the bank will get dismissed but i will not leave it as injustice has been done
With me by sbh and cbi.
Now i am adding some more cases pertaining to housing loans in banks as i studied many cases in delhi
After a case was files

Against me as i had worked as a branch manager for the first time in the bank as i joined as a
Specialist officer and bank forcibly

Posted me as branch manager against the bank rules to do so and i never worked in the branches except
At head office. I came

To know many things happening at delhi bank branches especially for sbi and sbi group in delhi and my
Findings are as

1. There are about 400 companies at delhi engaged in the sanction of loans from the banks.
2. There are more than 65 % of the housing loan cases in delhi alone which are sanctioned in the areas
Where even approved

Plans are not sanctioned by the municipal authorities
3. These facts are not only known to the banks top managements and in fact they pressurise the branches
To sanction such

Loans as they are forced to improve the business in this segment and very very good accounts are not in
Existence and if are, they

Go to sbi, hdfc and icici and they too finace such loans as there is no choice or otherwise do the
Business or close the bank.

Then who is responsible for such things, it is top management only as otherwise the officers are made
Scapegoats. And thhe

Directions are given in the meeting at various levels, training centers, circular guidelines etc and
Pressures from the controllers

Of the branches.
4. Hundreds crores of loans in this sector are being sanctioned by each bank every month in delhi
Itself and the position is

Even worst in other areas too. Even rbi latest guidelines are not being followed
5. Even in many cases the title deeds of the housing properties are fake and are difficult to identify
By the branches as they are

Just coloured copies as i have found in my research here at delhi.
6. Even some cases the housing properties are not available, title deeds are inginuine and even
Borrowers are not available and

In one such case even two banks i. E. Sbi and sbh pune branch sanctioned loans to the same borrower (Not
Traceable), no house

Is in existence and i had complained to sbh and cbi, cvc and rbi but no action was taken against mr
Ravindra kale as branch

Manager.
7. Cbi has to do justice with every one and has to dismiss about 95% bank officials on these lines as
They have registered a false

Case against me otherwise i will go to court for justice while making the concerned competent
Authorities too and bring the facts

To the notice of all in this world.

So i request the cbi to initiate action against all the officials of sbi and sbi group especially sbh
Immediately and book the top

Officials of the banks immediately who have worth crores of property acquired through bribery and
Corrupt activities.
As it is very old matter and no action is being taken by you too and your non response within 5 days
Will indicate so many

Things. I hope you will do justice in the matter and will avoid tarnishing the image of cbi at least as
Afetr knowing these facts

And further no action on that will lead to breach of trust by the public who will never belve you again
And i do not want that you

Should see such a day in future as once the trust lost in such cases where all the evidences are given
Can never be regained.
I will also forward this email to the honourable supreme court and others for their perusal or
Necessary action.
I still hope that you will maintain the respect and honour of your institution and investigate the
Matter on an urgent basis

Starting from housing loans in delhi by sbi group and go ahaed with other issues also.

Thanks a lot

Satnam singh wadhwa

Note: forwarded message attached

— original message —

From: "satnam singh"[protected]@rediffmail.com
To: [protected]@cbi.gov.in
Cc: [protected]@cbi.gov.in
Subject: fw: sbh exposed -7, hawala transactions
Note: forwarded message attached

— original message —

From: "satnam singh"[protected]@rediffmail.com
To:
[protected]@sbi.co.in, md. [protected]@sbi.co.in, [protected]@rbi.org.in, [protected]@rbi.org.in, [protected]@iba.org.in
Cc:

Rajesh. [protected]@nic.in, vivek. [protected]@timesgroup.com, [protected]@zeenetwork.com, [protected]@zeemedia. Esselgroup.com, i
[protected]@aajtak.

Com
Subject: sbh exposed -7, hawala transactions
Regarding hawala transactions — a big issue

It is a big issue concerning the country and rbi also may be missing it in its audit. Though the
Guidelines are there but not followed by many foreign exchange branches knowingly or unknowingly and
The result is this in all banks. Modus opearandi... Whereever the units receive full advance payments
And there the fake/bogus bills are prepared and some branches give the forex bills/documents to these
Companies on their request to dispatch directly where branches may not be knowing the consequences of
It.in some cases neither the goods are dispatched fully and documents are sent to buyers as per
Understanding and in some cases these units have opened their offices/branch in foreign countries and
It is very simple as money comes in advance form but bills do not go back.in some cases fake documents
Are submitted where even some officials of customs are also involved. I have seen all this and came to
Know only when i handled it practically and i reported the matter of shiva swamy and rajesh kumar of
Sbh ludhiana branch but the issue is closed by the bank and only my complaint to rbi, they told a story
To rbi and issue is closed. This is not a case of one branch and it is happening to a large extent
Through out the country but rbi must take it seriously to ensure compliace of such things and should
Not completely dependent on the banks as you have trusted a lot and they have taken you and country
For a ride.