NEW DELHI: With the CBI intensifying its investigation, more high-profile names are coming to light in the Rs 600-crore IDBI loan fraud including Sethurathnam Ravi, current chairman of Bombay Stock Exchange and P S Shenoy, former CMD of Bank of Baroda and former IBA chairman.
Ravi, who took charge as Chairman of the Bombay Stock Exchange on November 14 last year, was serving as the independent director of IDBI Board during the period of fraud and was chairman of IDBI Bank’s Audit Committee.
Ironically, he is an associate member of Association of Certified Fraud Examiners — a member of the takeover panel of SEBI.
Ravi is also a member on the Boards of SBI-SG Global Securities Services, SMERA Ratings, STCI Finance, Star Union Dai-Ichi Life Insurance Company, Tourism Finance Corporation of India and UTI Trustee Company, among others.Another name that has figured in the fraud is of Shenoy, who was serving as an independent director of IDBI Board.
Incidentally, he was the former CMD of Bank of Baroda and was also elected as chairman of Indian Banks’ Association for 2004-05.
Aptech non-executive director Ninad Karpe has also figured in the fraud. Till date, IDBI Bank fraud has named 15 serving and retired officials of the bank, which includes two serving CMDs.“The rot is deeper than we anticipated.
See the names of people, they are serving CEOs and CMDs. The whole system needs to be overhauled. Also, independent directors cannot shrug off from their responsibilities,” a senior Finance Ministry official told TNIE.
The CBI on Thursday registered a case against former Aircel promoter C Sivasankaran’s companies — British Virgin Islands-based M/s Axcel Sunshine Limited and Finland-based WinWinD Oy — for allegedly defaulting on loans worth `600 crore taken from IDBI Bank.