The Punjab National Bank Scam - Anil Kaul the Whistleblower

With the Nirav Modi and Atul Choksi scam reaching meteoric heights, it is now being said that the fraud that was perpetrated is now of over 2 billion dollars. Again a debate has raged on the health of the public sector banks and how organised corruption has raised the NPA Non-Performing assets of these banks to over 11% of their total asset holdings. This is organised corruption in an unprecedented manner where senior and junior bank officials collude with the lender to shell out loans to people who have a default history or have not stated their assets and collaterals correctly. Letter of Credits have been obtained by Nirav Modi Companies to withdraw money from the banks and this money has been syphoned off to shell companies around the world. Like Vijay Mallya, Nirav Modi also ran out of the country when he realised that the lid from the scam was about to blow up.

An uncle of mine, Anil Kaul, who was Chief Manager of Inspections at the BKC Branch of the bank had written to the RBI Governor about the rampant corruption in the system of the bank and on the collapse of the entire Vigilance Department of the bank. He had also mentioned how on talking on these important issues, he was asked not to fix senior AGMs in the bank but to take junior managers to the task. This was resisted by him and he was duly transferred to Calcutta. This was a way to silence him by the corrupt senior officials of the bank.

These letters are dated 2015. It can clearly be seen that the Punjab National Bank was and is still being run by not bankers but goons and gondas where every official down the chain gets a cut depending on how large the loan amount is. See the copies of the letters and emails along with Anil Kaul’s interview to Times Now News Channel.

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Letters from Anil Kaul to RBI Governor

Governor,                                                                                               31-03-2016

Reserve Bank Of India,

Mint Street,

Mumbai

                                                  Reg: Circle Head Mumbai Suburb

In this connection I am to bring you the deeds of Circle Head Vinod Joshi, which are not in the interest of the bank, prior to his joining as Circle Head he was AGM marketing and a  IAC Case in vigilance Department was pending against him, There was large scale mis selling of Met Life insurance policies in thousands to the poor and illiterate farmers of Midnapore Circle, a complaint was received in the Head Office, and Mr Joshi was send to investigate the mis selling, he found there that the complaint was true and even today it can be verified from record that more than 50% policies have expired for non renewal, how the poor and marginal farmers were cheated by giving them the Policies, the money withdrawn in cash from Kissan Card and diverted to Met Life Policies, the poor and illiterate were sold Insurance policies, which were much beyond their means ,but He gave the clean Chit to the  Circle ,where this mass mis selling was done, for this his case was  wrapped up, and he was promoted  and posted as Circle head Mumbai .Point wise charges on working of Circle head.

1)He got posted Umesh gupta AGM as branch incumbent of  Santa Cruz branch, Mr Gupta financed a party from nasik to the tunes of crore of rupees and car loans worth millions of rupees, when the branch recommending officers objected to the loans, the CH humiliated the staff and got the Auditor and staff transferred from the branch, the Concurrent auditor in all his reports was informing about the misdeed of Mr Gupta, but the CH did nothing, on the contrary he along with CM of Circle Office  and Umesh gupta went to wine and dine with the party at Nasik, the photographs and the details are at vigilance department, because of complaint by the party, the party has filed FIR against Mr Umesh and CH, and when the senior manager of the branch has signed an affidavit in court, he was harassed and suspended by the CH. it is not an irony that Mr Gupta is posted in the same FGM  at Circle Office, Ahmedabad and deciding the fate of other officer in Inspection Department, whereas his case even after two years are not getting into action. See the Nexus, the bank lost just Rs400millions.now even after more than 2 years no punishment has been given to Mr Umesh Gupta. The party send a bill for more than 90,000 for party at Nasik, when relations between the party and Mr Gupta soured, then the circle head paid around Rs20,000 being the reasonable amount through the account of his CM. Now as the new AGM is posted in the branch and he is not helping CH in protecting  Mr Umesh, the  present incumbent AGM is being harassed by the CH, see the number of staff members today and the no of staff member  at the time of Umesh when fraudLoan/Deposit accounts were being opened.

2)ATM at topiwala Goregoan  was taken at the monthly Rent of Rs50,000PM whereas in this failed mall the Rent in not more than 15,000PM and when the complaint was made, the DGM(ZAO) i.e. the investigating officer has written that the Rent is 15,0000,but the Municipal Taxes are Rs35,0000,can anybody believe that on the  monthly rent of 15000 taxes can be Rs35,000.PMThis is the Quality of Investigation and the degree of Manipulation by CH. If you see the file you will find how the note at GAD is manipulated to present the Rosy picture  to HO GAD with all false information, it is written in the Building proposal that the mall is in front of Goregoan Railway station, whereas  the back side of Mall is connected to the Railway station by a narrow lane.It is a Failed mall, and Rent for 8 months were given, and after 8 months the ATM became active, so clear loss of more than Rs4lacs to the Bank.

3)In Branch Office Brady House, the AGM in his Power has given Cash Credit and Term Loans to three parties i.e. K V ALLOYS, Gopal Masterbach and vision Machine for Rs10 crore each and the person behind  all three accounts is Mr Navedu babbar, who has cheated the Delhi branches of our bank in 56 cases, the full record of these 56 cases is in the files of Circle Office, Mumbai, but the CH has not taken any action against this AGM and to the surprise of everybody ,the CH has got him posted in his Office and the beauty is he is the the AGM Credit in Circle Office, the party belongs to Delhi, the Factory is situated in Village of Rajasthan and the loan is being given by Mumbai MCB, and when the loan officer and Chief Manager objected and went to Circle Head and told him about the Fraudulent loan, they were humiliated and sent back to the branch. Today all accounts are in Quick Mortality, and almost three years have passd, there are sfive  big accounts where fraud has taken place, but circle head is not doing anything worth his salt to protect the bank interest, Mr anil bansal has two years back has given a negative note during his Quarterly Visit to the branch ,but being informed by His Dy. Circle head the Circle Head failed to take any action against the branch or the AGM to protect the banks interest.DGM(ZAO) has also pointed the finger on these accounts just at the time of sanction, because it was talk of the town that dubious loans are being done at Brady House(MCB). A fundamental Principle of the CVC is that ”An explained delay is a Vigilance matter” It is a cognizable offence to Hide a crime and CH can be booked under Section 120B of IPC.The beauty is that the Concurrent Auditor of the branch was recommended as” STAR PERFOMER”. Here in LC for Rs25 crores, where Unapproved Transport  MTR are discounted, three investigation has been done by three officers of various Rank, over a period of time, but no result. See the Active Criminal Convince.

4)In the case of Rajendra Metlife ltd bank has lost more than 120 millions, here the plant was never erected, the bill  from shady dealers are on record ,and are total fake, the property mortgaged is in dispute, the borrower was partnership  firm but lately converted to Ltd co, in a hurry, in this case the first investigator gave the true picture that the plant was never erected and the bill are fake, so the second investigation done and the the investigator was forced to give a clean chit, even today the account is looked it will clearly prove to be a fraud and till date no staff side case is being initiated, full cash credit amount disbursed, How when the Plant & Machinery were not erected how the transaction in CC account for working capital is allowed Bank has paid Rs10,000 to lawyer to draft FIR two years back ,but till date no progress, just to protect the past CH, the present CH is keeping the things under wrap. The Staff accountability note sent to IADF HO has not blamed the real culprits in this account is a matter of investigation by outside Agency, because the internal investigation is being manipulated at every end by the present CH.

5)One Mr Sharma has floated three firms and most of the work of GAD at Circle Office given to these firms and they are using duplicate sanitary items of big brands, sample survey of flats be undertaken and will come to know about the duplicate items used by him. He charges for Jaguar, but original Jaguar not installed. The painting work is so shoddy, that it does not last for even three years.

 6)In Ghatgopar branch ,the Chief Manager has given five repair and renovation loan of Rs20lacs each on 900 feet flats, and when the Concurrent Auditor objected, as bill for this amount was not provided by the parties, the auditor was called at Circle office and was abused in front of many officers ,I am witness to it then how you expect from auditors to write honestly their report, ZAO has miserably failed to protect their Auditors form being humiliated by CH, In this branch only a proposal came for substitution of security, the flat was valued at Rs25000 per square feet ,and when the proposal came to COCAC,I objected that the value is highly inflated and it cannot be more than Rs150000per square feet, than under compulsion circle head told me and the other chief Manager to go and verify, we went the same day and gave the report that the entire building is vacant and the ongoing rate is not more than 15000,and at this rate also to find buyer is difficult, the report is in bank record, no action was taken against this Chief Manager for these two Acts, So due to involvement of Manager parties are being successful of giving properties of failed Malls and getting released other good properties. No action by CH against the manager.

7)Officers are being transferred frequently, even Chief Manager are being transfered without any norms one Mr Shakuja CM was transferred thrice in one year and nobody is there to Speak  for these officers. List be asked from CH of the officers who have been transferred beyond norms and reasons thereof, List of officer transferred before one year be asked for?role of Officer Director be also investigated by SEBI for  FAILURE OF CORPORATE GOVERANCE. He failed to protect or look after the interest of Ordinary Officers to whom he represents in the bank board, He ever raised this issue in the Board.

8)The CM Mandvi  was doing a good job but to adjust one CM, who has come from outside the Zone the CM was transferred before tenure  and during the incumbency of this new CM, the fake Bill of Entry scam of Rs550 crore has come out. Where ever the CH has done things beyond norms, the things have gone wrong. Here also in the First investigation Report every thing was  given a clean Chit ,even report of no wrong doing was sent to HO, the Auditor was threaten to give clean chit and he gave out of fear, later on the branch was informed that RBI has reported some BE, are fake, how you are reporting everything fine.

9)Whenever a new Auditors joins he is given the worst accommodation, and when who so ever fells in his trap is given better house, list is long, when you investigate you will come to know. Recently Chief Manager Vigilance, who is representative of HO Vigilance Department is also obliged in the same manner, so who is going to write or Speak against  present CH.

There are Two Star Performer for the year 2013 in CO one is Mr P Thakur ,who was in Sabarmati Jail and was under suspension, but as on date you will not find any record of his suspension or jail in banks record, whereas CH is well aware of it, The CH should explain how is so, and he was promoted as CM with effect from back date. The other employee is Zonal Secretary of Officers Association who is getting the Star Performer status for the last two years continuously; he is helping the Circle Head in manipulating the cases in IAC matters. So the clear nexus of CH and Officers Association, where will the ordinary officer go for his grievances.

10)In Goregao East M/s Devi prasad Steel was sanctioned a Cash Credit limit for Rs4 crores, with EM of flat in the building known  and famous as COCACOLA building, every body in the country know that this building is illegal and will be demolished, but still it was taken as security with adverse Valuation and search Report ,but due to the courtesy of present CH no action has been taken against the CM of the branch even after four years, is CH  not answerable? Here there is no proof of advance tax paid by the borrower. No occupancy certificate was taken whereas the building was more than20 years old and the search report clearly speaks that occupancy certificate should definitely be obtained, but not obtained. Money Trail be seen and full fraud will come.

11) In goregao(East) loan was given and fully adjusted but the CM and concurrent Auditor both were punished, but to the same party B.O. SEEPZ gave Clean OD to 10 pvt limited companies and two to three loan each to director of the company IN PERSONAL CAPACITY as clean OD, the fact reported in the same Investigation Report, but no action against the incumbent of Seepz branch, is it not a case of suppression of facts to Ho IAD by CH, the IAC note not sent to Ho, and file closed at the end of CH. which is totally against Banks norms or rather being  party in suppressing facts. You just call the investigation report, and matter will be clear to you how things are being manipulated to protect the wrong doer if he is in TEG of the bank, TEG people can give three personal loans to one person, beyond his powers, and Bank norms, and bank will not take action against the person, because he is getting the shelter of present CH.

 12) The present CH has done his best to protect and delay the cases of Vashi AGM. There are letters in the file from HO IAD giving reference of 10 letter for sending the IAC notes, the matter was raised in the board many time and there was hue and cry, but the CH did his best in delaying the case, many times the role of Circle Office has been examined in case of Vashi Episode, but suppressed all the time, The GM has written 10 letter to expedite the case but no response from  present CH to expedite, now only the Than AGM has been arrested on complaint of the party, bank has no role to play in his arrest. I do not understand how many times DGMs form different ZAOs will come to Mumbai and examine the role of CH in vashi branch episode.

13) Loan to Mantrey Reality was got sanctioned by CH in Matunga branch, whereas the Annexure to Auditor Report of the company state that the party is defaulting in payment of service tax and Vat for the last three years to the tune of Rs 2 to 2.5 crore, the lease rental is outside Mumbai ,the promoter Director are under arrest for fraud of more than 200 crores, what CH saw while recommending the loan when the report was showing negative picture but the same was not written in any note by CH.

14) The terror is such that Mr Kalra Branch Manager of Marol branch was living in Bank flat at Marol itself was forced to vacate the flat and new flat 10kms from his branch was allotted, whereas he was living just 1km from his branch where he is posted, is this not victimization, whereas Auditors of VLB are being accommodated in Andheri flats, just to oblige them, so Auditors lot is happy and not bringing the wrong doings in VLB. The role of Officer Director may be seen also in this case.

15) There is Annual Audit system, there is Concurrent Audit System, there is CARD Audit, there is MARD Audit, there is Snap Audit, Quarterly Visit of CH is also there, still frauds are coming out so frequently in Mumbai Circle,Officer Director is also posted in Mumbai for more than 25 years ,with so many Checks still fraud are going up, this proves that there is some fault in Supervision by successive  CHs or some other thing is there, please look into it in depth.

16)Please investigate and you will come to the conclusion that more than70% premium collected by Metlife Insurance is from Loan parties, in one case in Vashi  Branch Cheques  were discounted and premium paid to metlife and than these cheques were bounced, so new cheque was purchased to adjust the first entry, the second cheques were also bound,, see the degree of fraud being played by bank money.

17)There were Elections for Officers Association, the CH left the meeting which was going in F Gm office, when he received a phone call from Association people that nomination is filed by Security Officer and Chief Manager from his office he came to Circle office, in the evening and threaten the persons who has filed nomination for the post of Zonal Secretary and President, both these officers were with Returning Officer when the phone came to them asking them to come to Circle Office, after their coming to Circle Office, they were threaten to Withdraw from the election. Is it not crime to threaten Officers to withdraw, this can be easily proved by Electronic Surveillance. Is it not a criminal offence?

18)The young Financial Analyst to whom bank has appointed and posted in ELB and VLB are a frustrated lot ,as they are being pushed to process and recommend loan which are not for the better health of the Bank, when they raised their voice against this, a meeting by Officer Director, who is also General Secretary of All India offices Association was arranged in DADAR, and when they spoke from their heart ,the GS got annoyed and said I will take up the matter at board level and stop the direct recruitment of Financial analyst, this is proved when last month he gave a call for non cooperation when Bank put the proposal for recruiting GM for I T/digital banking, these young officers have become party to the CBI cases which bank is going to file shortly with no fault of their, as they have raised their voice at the right time, but CH failed to listen and act on their voice., reasons best know to him.

19)The Expenditure vouchers of Branch Office Brady House(MCB) of 04/12/2013,27/12/2013 and 08/01/2014 for lacs of rupees be checked and investigated to whom the Gold Coins purchased and given by the branch, the Expenditure Head was debited in the branch, I cannot write in detail as it will create a Political Storm in the country, you just call for the voucher and the involvement of the present Circle Head will be clear, that too what extent he is involved in all type of Illegal activities. He cannot shrug the responsibility as two other branches are also involved, who has acted on his order and remitted the money to MCB for purchase of gold coins.

20).In Santa Cruz, worli Naka, Goregao (W),Worli Sea Face Loan for crores have been taken by Imposters against Genuine FDRs,for which CBI,EOW of state Gove are investigation, the role of present CH may be also examined in this Frauds.

As there is unholy Nexus between officer Association and Circle Head, persons with procedure lapses are being booked by vigilance Department and the real culprits are not being booked, as CH and Zonal Secretary are preparing Staff accountability notes and sending to the IAD Head Office, with manipulated information. You call me I will prove it to your team of investigators. If RBI investigates only three branches of the Bank, i.e. VASHI, Brady House and ECE House, New Delhi, fraudulent Advances to the tune of more than Rs9000 millions, I repeat Rs9000 millions will surface, and present CH is well aware of it. Still no action by him.

I request you to write to Government of India to appoint a SPECIAL TASK FORCE with your senior Officers and two persons from CBI, the SEBI may also be taken in loop for failure of Corporate Governance of Officer Director who cannot say he is not aware of the wrong doings of CH ,in Mumbai Circle, on these counts:-

  • Large Scale Frauds in Loan Accounts at Santa Cruz and Brady House.>(Rs2000 Millions)
  • Large Scale Frauds in Deposit Accounts at Worli Sea Face, Worli Naka, Goregao (W),Santa Cruz (W)etc.>(Rs200 millions)
  • Fraud in(BE)Foreign Remittance to the Tune of Rs600+crores in Mandvi and Two branches.
  • Selection of Star Performer at Circle Office.
  • Extra ordinary Delay in lodging of FIR and submission of FMR in fraud cases (25-30months).Some even still pending for 30-35 months.

 as the racket  is so deep rooted that inside investigators will not be able to fathom the depth of wrong doing and corruption in the organization  and from the above it is clear how inside Auditors are threatened  and push to corner, even in RBI Annual financial Inspection Report 2014/15, it is stated that Auditors are frequently transferred, which is not in the interest of the bank .I am prepared to Assist the Team to get the truth out and thus this Esteem organization who has lost its glory in the last five years regains it .All the information is related to time of undivided Circle and of Present CH Suburb, as all the branches were under him, when the above misdeed happened.

Anil Kaul

Chief Manager

M -7738093886 E mail -anilkaul@pnb.co.in

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From: “ANIL KAUL” <anilkaul1956@yahoo.co.in>

To: “governor@rbi.org.in” <governor@rbi.org.in>

Sent: Tue, Apr 12, 2016 at 3:26 PM   

Subject: Anil Kaul PNB

 

Governor,                                                                                    

Reserve Bank of India,

Mumbai.

                                          Reg: Corruption in Mumbai Circle Punjab National Bank

Sir,

     I was working as Chief Manager; Inspection in Circle Office at BKC, Mumbai, here there was issues relating to sending of IAC notes to GM Inspection for Vigilance overtones. The CH was keen to protect some Corrupt AGMs, and instead of seniors, some junior officer to be fixed for which I did not agreed, So I was transferred to local branch at P M Road, fort, I wrote a letter to our CVO giving details of the same, till date even after 8 months there is no response from him. So I telephoned him to know about the progress.

On 18th march my AGM branch called me and told that there is call from F GM office to relive me immediately for F GM Kolkata so I was relived at 3.30pm and I was relived, Previously from Circle Office also I was call by CH and relived at 10.30 am. Prior to my posting in Mumbai I was Chief Manager Vigilance and have found actionable lapses in many case of Now F GM Kolkata, so I have been intentionally posted to Kolkata, further am to inform you that recently three stents have been implanted and in this October am due for retirement.

Please be kind enough in giving me time to meet you personally and give you the letter which is giving details of wrong doings in Mumbai Circle, I have prepared a four page letter giving the details of rampant corruption in the circle, If any of the charge is false am open for Disciplinary action.

Looking forward to see you, any time given by you will be convenient to me.

Anil Kaul

Chief Manager

M 7738093886

E-Mail anilkaul@pnb.co.in

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Emails from Anil Kaul to Banking Officials

From: “ANIL KAUL” <anilkaul1956@yahoo.co.in>

To:vigilance@pnb.co.in” <vigilance@pnb.co.in>

Sent: Wed, Apr 27, 2016 at 12:01 AM

Subject: Re: Complaint of Sh. Anil Kaul\

Chief Vigilance Officer                                                                                    25-04-2015

Punjab National Office

Head Office,New Delhi

 

Sir,

                                       Reg: Working of Mumbai Circle

                                        Ref: My complaint dated 10-06-2015

Today I have received the reply of my above refered complaint after 10 months stating that the Investigation Report can’t be given to me. Does the immediate Boss the FGM has taken necessary action in the following case.

So, please confirm that action has been taken against Circle head for taking ATM of Topiwal building on Rent for Rs50,000  PM, and misleading the GAD,HO that the mall is just opposite Goregaon Bus station and Railway station, which is false and the Hits will be 400 per day. Whereas the best showroom, more area and better location in this failed mall is available for Rs15,000Pm.

Action has been taken against Mr Umesh Gupta AGM Santa Cruz branch for making Bad Advances (C.C & Car Loans) worth crores of rupees to Nasik Party, and FIR lodged. 

FIR has been lodged against Navedu babar for Cheating Brady House Branch (MCB) Mumbai, in three cases of Rs10 crore each sanctioned by AGM in his own Power (K V Alloys/Gopal Masterbach/Vision Machine (These three accounts are Fraud from the day advance is made).Charge Sheet issued to AGM of the Branch, as three year has passed and adverse comment of Dy.CH and DGM ZAO on record. Three investigation has been done in the case of Jet Speed Letter of Credit for Rs250 million.(Why there is need for three investigation in one account.

FIR has been lodged with CBI in the case of Rajendra Metlife, P Ltd Zaveri Bazar and charge sheet issued to erring Officials?(Case more than 4year old,amount Rs12 crore)Bills are fake, what is the stand of Investigator in this regard.

Sample checking of flats has been done and quality of work of Contractor Mr Sharma checked.?

List of Officers has been checked and total number identified whose transfer has been done beyond norms.

The Suspension and Jail period has been filled in HRMS of Star Performer Mr Praveen Thakur, than Senior Manager HRD/GAD. 

Justification given by the investigator and are acceptable to the bank?in each and every point raised by me

Anil Kaul

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From: Vigilance Deptt HO <vigilance@pnb.co.in>
To: anilkaul1956@yahoo.co.in
Cc: pranjan@pnb.co.in
Sent: Monday, 25 April 2016 11:49 AM
Subject: Complaint of Sh. Anil Kaul\ 

Sh. Anil Kaul,

Chief Manager.

Reg:- Your e- mail dated 31.03.2016 as regards your Complaint dated 10.06.2015.

In this connection we have to inform that the investigation report is our internal document relating to a particular case.

As such we cannot give a copy of the same to you.  

Vigilance Deptt. HO

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