After Raghuram Rajan's letter on bad loans, Modi government set to review all fraud complaints received

The top banker’s missive gave Opposition a chance to attack Prime Minister Narendra Modi, saying that PMO sat on the letter and took no action.

Published: 15th September 2018 01:57 AM  |   Last Updated: 15th September 2018 08:18 AM   |  A+A-

Raghuram Rajan

Former RBI Governor Raghuram Rajan (File Photo| AP)

Express News Service

NEW DELHI: Piqued by the heat generated by former Reserve Bank of India (RBI) governor Raghuram Rajan’s recent letter about bad loans, the Centre has asked finance and corporate affairs ministries to review all the complaints the Narendra Modi-led government has received.

Apart from whistleblowers’ alerts, the review will include inter-departmental letters where the Prime Minister’s Office (PMO) has been tagged for corruption charges against investigative officials. According to highly placed sources, the move is a direct fallout of Rajan’s letter to a parliamentary panel, in which he claimed to have flagged the bad loans issue to the PMO, clearly mentioning the names of potential defaulters.

Rajan had written to the Parliamentary Estimate Committee on September 6 that he never heard from the PMO on his letter.  The top banker’s missive gave Opposition a chance to attack Prime Minister Narendra Modi, saying that PMO sat on the letter and took no action.

Read Here: The complete transcript of Raghuram Rajan's note to Parliamentary Estimates Committee on banking NPAs.

An official told TNIE that whenever the PMO receives a complaint, it forwards a copy to the respective department for action. However, the PMO has allegedly not acted upon some high-profile cases including that of Nirav Modi and Mehul Choksi, despite whistleblowers flagging the matter.

One such case was of Hari Prasad SV, a Bengaluru-based jeweller who claimed to have approached the Enforcement Directorate, Central Bureau of Investigation, Securities Exchange Board of India, Ministry of Corporate Affairs and the PMO on July 26, 2016, against Nirav Modi and Mehul Choksi.

READ HERE: Did Modi office sit on Raghuram Rajan's list of big fraud cases?

“The ministries keep on receiving a number of letters flagging corruption or financial fraud. Some are serious while others are frivolous or written with a vested interest. Now, the department concerned will give a detailed action and take report on all the complaints and, if dismissed, the reason for dropping the investigation. A copy of the report will have to be submitted to the PMO by November,” said an official.

The review process will help the PMO keep a tab on all such complaints.

What Rajan said

I sent a list of high-profile cases to the Prime Minister’s Office urging that we coordinate action to bring at least one or two to book. I am not aware of any progress on this front. 

"The RBI set up a fraud monitoring cell when I was Governor to coordinate the early reporting of fraud cases to the investigative agencies. I also sent a list of high profile cases to the PMO urging that we coordinate action to bring at least one or two to book. I am not aware of progress on this front. This is a matter that should be addressed with urgency," he said.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments(12)

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

  • Alok

    Point is why only at the last minute ?....when the government was going to change?........what was Raghuram doing for years that he had been the Governor of RBI ?...why was he not not so "Conscious" while the Congress was in power ?....isn't it clear that he was involved all the while and now that he felt he was going to be held responsible
    1 month ago reply
  • Guru

    From 2008
    1 month ago reply
  • Angeli

    Gosh I must admire the replies on such complex issues within hours. Are really the pro government lobby privy to more info than the rest of us? With such confidence to decide who good n who's bad. Wah!
    1 month ago reply
  • Jayakrishnan K

    please do not cast aspersions without proper evidence. Rajan has not told to which PM he sent that letter.
    1 month ago reply
    • R S Murthy

      This we have to understand as systemic failure but not an accusation against any individual or office. Here Prime Minister's secretariat is answerable but not the prime minister.
      1 month ago reply
    • Anubha Subramanian

      Rajan had written the letter in 2015 to the PMO. The story is already being reported. Still even for a per cent assuming that he wrote it in 2013
      1 month ago reply
    • Lala

      Modi govt is showing laxity in handling bank frauds and had not come out with full facts in public domain that who were responsible for these bank frauds and what was role of UPA and BJP govt. Congress party is trying to put all blamed on Modi govt. This matter is very serious and any dill doll tactics of BJP govt will land them in serious trouble and people will blame Modi govt for conniving with scam esters. So Midi must replace present FM by another capable and learned persons who can go into details of bank frauds and responsibility can be fixed on erring persons. This matter should not be taken lightly by Modi govt. Otherwise
      1 month ago reply
  • Rajendran

    Typical of the author as per the avowed policy of your magazine to highlight the effort of the media darling Raghuram rajan and discredit Modi in the so called letter episode. Rajan in a typical bureaucratic fashion shoots of a letter to the PMO recommending action against some borrowers only to stave of any finger pointing at him at a later date which is exactly what happened. Did he ever have a serious private discussion with the PM on the hopeless situation of the banks and the manner in which loans were given recklessly on extreme pressure from PMO's and FM's office? He did precious little to address the rot which had already set in regarding suppression of massive NPAs and evergreening of loan a/cs. RBI was fully aware of all this but chose to ignore despite the high profile and media's blue eyed boy Rajan at the helm of affairs. Stop this constant tirade against the present govt. which is unwarranted and biased.
    1 month ago reply
    • Anubha Subramanian

      A dedicated reader of The New Indian Express
      1 month ago reply
    • Anubha Subramanian

      And by the way
      1 month ago reply
  • Daritram

    Passing on the buck Rajan style..he lived fully in neck deep with manmohan
    1 month ago reply
    • R S Murthy

      let us not become intellectually bankrupt while posting our comments.
      1 month ago reply
facebook twitter whatsapp