Minister Appoints His Man As Director of Bank

Personal auditor of family companies of Minister Mr. Bansal elevated to the post of director. This is not astonishing in Indian context. Most of directors, Executive directors and Chairman and Managing directors are appointed on the basis of their closeness with Ministry of Finance or RBI top brass or Ministry of other departments who holds good relation with MOF and RBI. It is not easy to expose the underhand dealing (bribe in cash or in kind) in all such appointments.

Bansal has  appointed his relatives, friends and close associates or promoted them or directly or indirectly motivated competent authority for appointment or promotion of existing officials based on recommendations of  his or  his relatives and it is  not a new phenomenon. 

Practically all ministers are involved in improper recruitment, appointment, promotion, posting and transfers. It is beyond doubt that appointment of ED or CMD in banks usually takes place only after some illegal deal behind the scene. Similar course of action happens for promotion of officers Below ED or CMD level i.e.from a scale to another. 

Most of the directors which are ruling party nominees are those persons who have failed in political career or who are in old age. 

In brief, post of  ED and CMD are either used for obliging a closely related person or sold at some price. Very few get success purely on the basis of their merit and performance and they are promoted to show the common bankers that merit is also respected by promotion committee..

But if CBI honestly investigates into all appointments made during last five to ten years it will be clear that so many Bansals directly or indirectly related to Minister’s family  have got key post not only in banks and insurance companies but also in other Public sector undertakings.

If promotion process of all Public sector banks PSBs is honestly investigated by CBI , it will be found that many Bansals have got quick and out of turn promotion and are now holding key posts in banks. History of promotion process and transfers is full of corrupt dealings. Many efficient officials are rejected and incompetent officials are promoted and this is well established culture.

Even judiciary cannot provide justice to any aggrieved officer because e of the fact that it takes decades in delivery of justice and by the time it delivers justice, the person improperly promoted gets retired and those who are improperly rejected get frustrated and decides not to apply for promotion.

Top executives of the bank spend crores of rupees to ensure that either the court case is indefinitely delayed or the aggrieved officer who filed the court case is motivated,bought or intimidated in such a way that he or she prefers  joining  line of action dictated by such corrupt but powerful bankers..

Once, with the help of a Godfather,an Orriya officer was elevated to top post in a bank in late nineties,   it was seen in later years that all junior Orissa based officers started getting success in all promotion processes despite weak knowledge, inefficiency, incapability and charges of corruption leveled against him and most of honest and capable officers of other regions got rejected .

In eighties, when south based officers had strong lobby in upper echelon of the bank, 75 percent of officers used to get promotion from South India. In a bank top leader of officer’s association was from West Bengal, it was observed that Kolkata based officers got home posting whereas officers of other state used to be thrown from east to west and north to south and vice versa.

Since most of officers in the rank of General Manager and Deputy General Managers who are part of Interview panel  constituted for promotion processes every year are normally from Metros, officers of Metros are promoted when without they do not have rural experience as per government guidelines. Every year clever and cunning top officials of the bank change policy meant for of promotion processes as per their whims and fancies and they due to their good relation with MOF get clearance form MOF.

When a GM or DGM wants to promote an officer despite all negative points he first change the rule of the game for that year and then promotes officers of his or her choice. Sometimes they promote officer on taking an undertaking that he or she will serve rural areas after getting promotion and sometimes he gets relaxation of rural condition from Ministry of Finance. 

Similarly length of service is relaxed every year to promote officers who are preferred boys of top executives. I may say without any hesitation that most of the time officials of Ministry of Finance who give permission to change the rule of the game year after year either do not know the intricacies of the change in rule or they do not have time to look into pros and cons of the matter and to testify the rel intention of the bankers. This is why banks are going from bad to worse and MOF is silent spectator of all evil works.

In brief one can say with ease that polices are changed and twisted every year to suit the whims and fancies of top executives without taking care of safety and security of assets of bank.

Saiyan Bhai Kotwal To Dar Kahe Ka' is very famous proverb. It means when the police is in the hands of thieves, there is no fear of getting caught in the minds of thieves. Similarly when a person has close relation with a minister, he can use this closeness for any benefit in Indian environment. As soon as a bank official comes to know that a person X is close to a powerful minister, he becomes ready to do anything for him, to please Mr. X. Sanction of loan to the tune of hundreds of crores of rupees or waiver of existing loans are not new things for bank executives.

Flattery starts immediately at all level when Mr. X (close to minister or friends and relative of a minister or any powerful officer) reaches any office. Not only this, even persons close to Mr. X , or directly or indirectly y related to Mr. X also become powerful and they also start using, abusing and misusing the relation of Mr. X with the minister or powerful officials. Violation of rules and deviation from existing laws then become the way of life, way of working and also a mater of praise in all corners.  And the bitter truth is that even the minister feels elevated when he or she comes to know that his position is so important that people from all corners of the country are pouring in and offering him frequently flower bouquet and costly gifts at every occasion, not only to his minister but his friends and relatives too.

 Majority of ministers, politicians, powerful officers in government departments, banks and insurance companies are victim of this disease. Officers in bank who are mostly number one flatterer can go to any extent to earn the good will and blessings of a minister so that he gets not only quick promotion and good postings but also  his evil works are protected at all place and no one dare take punitive action against him for his ill-motivated works.

Corruption grows like cancer and honest officers who have got no God father are sidelined by this corrupt system. As such it is first necessary to end this culture of flattery and bribery to cure the cancer of corruption and for this purpose India need honest and devoted person to head each and every department and at the same time all agencies alike CBI, CVC, CVO, Anti –corruption Bureau, judiciary, Police, administrative officers    etc start working honestly, effectively and sincerely. If this does not happen , good officers like Mr. Khemka will always be thrown in deep sea and Vadra like person will grow faster and faster

Pawan Bansal's kin was recommended for Canara JV

NEW DELHI: Canara Bank nominated a nephew of embattled Railway Minister Pawan Bansal to be an independent director on the board of a large insurance JV it set up with Oriental Bank of Commerce (OBC) and HSBC Insurance Holdings. The nephew, Chandigarh-based entrepreneur Vikram Bansal, was recommended for the post by Sunil Gupta, a director of Canara Bank.

As ET reported on Wednesday, Gupta is a chartered accountant for a number of companies owned by the minister's family and became a director in state-owned Canara Bank when Bansal was the junior minister for finance responsible for expenditure, banking and insurance.

Bansal, the nephew, became an independent director on the board of Canara HSBC Oriental Bank of Commerce Life Insurance Co. in August 2010. He is also an authorized signatory of the company that posted premium income of Rs 1,912 crore during the 2012-13 fiscal.

The other independent director nominated by Canara Bank is Sid Khanna, who was formerly a global managing partner at Accenture and currently serves as the chairman of the buyout fund India Equity Partners. Canara Bank owns a 51% stake in the insurance JV, with OBC holding 23% and HSBC Insurance Holdings Ltd owning 26%.

Forty one-year-old Bansal runs an advertising company-BR Advertising Service-in Chandigarh and is also a shareholder and director in Bansi Raunaq Energy Group Ltd, a company in which Pawan Bansal's son Amit and the Canara Bank director Gupta both serve as directors. Gupta is also the auditor of Bansi Raunaq Energy Group. This paper reported on Wednesday that Canara Bank has given loans amounting to at least Rs 35 crore to companies owned by Pawan Bansal's sons and a nephew.

"If you ask me, they must have approached me for my experience in marketing," Vikram Bansal told ET, adding that he held a BCom (Hons) degree (government college, sector 11, Chandigarh) and an LLB degree from Punjab University. "I have experience in this field for more than 15 years so they must have felt I could help with marketing policies and related work," he said.

Bansal said he received no remuneration from the insurance company, apart from a sitting fee for board meetings- Rs 20,000 per meeting. The board typically meets four times a year. Bansal sits on four board committees, including the remuneration committee, policyholder protection committee and the board risk committee. Canara HSBC confirmed Bansal was an independent director on its board, but did not respond to questions about the circumstances of his appointment.

The company's list of authorized signatories on the website of the registrar of companies lists Vikram Bansal's residence as the same address that Pawan Bansal has listed as his permanent residence on the Lok Sabha website-House no. 64, Sector 28A, Chandigarh. Bansal said he was legally entitled to use the address as his mother held 50% ownership rights to the house. Vikram Bansal's father is Pawan Bansal's brother.

Bansal told ET he was recommended by Canara Bank director Sunil Gupta to be made a director on the board of the insurance JV. But neither he nor his companies had any business relations with Canara Bank or the insurance JV, he said.

http://articles.economictimes.indiatimes.com/2013-05-09/news/39143957_1_canara-bank-insurance-jv-independent-director

Auditor of Bansal clan firms 'handpicked' for bank director's post

HT Correspondent , Hindustan Times
Chandigarh, May 09, 2013

Vikram Bansal, nephew of railway minister Pawan Kumar Bansal, had recommended the name of an auditor of the companies run by the Bansal clan for the post of director of a nationalised bank, it has emerged from the investigations.

http://www.hindustantimes.com/Punjab/Chandigarh/Auditor-of-Bansal-clan-firms-handpicked-for-bank-director-s-post/SP-Article1-1057719.aspx

Selection Of ED And CMD of Public Sector Bank

Vigilance officials say their task is daunting, as complaints of irregularities start pouring in once a candidate has been selected. "There are all kinds of complaints. Some as frivolous as that the candidate has distributed gold coins in the ministry," a finance ministry official said, adding that in some cases the complainants and addresses were fictional or the objections were filed on forged letterheads. 



http://dkjain4970901092007.blogspot.in/2012/10/selection-of-ed-and-cmd-of-public.html

CBI links Railway Protection Force to cash-for-jobs scam: Sources

Arunoday Mukharji CNN-IBN | 11-May 13:52 PM

New Delhi: The Central Bureau of Investigation (CBI) has secured key leads linking Railway Protection Force (RPF) to Recruitment Scam to Railway cash-for jobs scam, said sources. CBI sources added that RPF officials played key role in dubious recruitment deals.

Leads suggest that RPF association was used to carry out deals and a hawala route was used for cash dealings. The Home Ministry had recommended banning of RPF Association but the Railway Ministry turned it down, revealed sources.

Railway Minister Pawan Kumar Bansal on Friday resigned over the bribery scandal involving his nephew, who received payments from a Railway Board officer in return for a promotion. Vijay Singla, Bansal's nephew, was caught in Chandigarh with the bribe money of Rs 90 lakh and arrested by the CBI.

Canara Bank had then given loans worth crores to the company owned by the Bansal family. The same bank had also granted loans worth Rs 25 crore to a company run by Vijay Singla, who is now in CBI custody.

Reports also said that the company run by Bansals' sons gave an unsecured loan to the minister and this contradicts his claim that he had no links with his family businesses.

http://m.ibnlive.com/news/cbi-links-railway-protection-force-to-cashforjobs-scam-sources/390988-37-64.html

Bansal clan formed companies to route bribe money: Jain
“The whole family of former railway minister Pawan Kumar Bansal is into corruption and they formed companies to channelise bribe money,” alleged Satya Pal Jain, former Chandigarh MP and BJP leader. Releasing documents about three companies where Bansal's family and relatives are directors 
http://www.hindustantimes.com/Punjab/Chandigarh/Bansal-clan-formed-companies-to-route-bribe-money-Jain/SP-Article1-1058327.asp

Are Complaints Against EDs Approved for CMD Posts Frivolous or Genuine ?

Collected from Website namely                                             www.allbankingsolutions.com

by

Rajesh Goyal  

Today (05/10/2012) an article has appeared in ET under the heading  "Frivolous complaints bog down selection of public sector banks chairmen".   The whole stress in the article has been that the delay in selection of CMDs for PS Banks is merely on account of frivolous complaints against poor CMD aspirants.   The article concludes  "the government, however, blames the Central Vigilance Commission (CVC) for the delay in clearances".     Can I know, when was the final decision for  taken?   After this decision, for how long the files are pending with CVC?  Is the delay due to CVC clearance or the hectic lobbying of manipulators in MoF for plum posts ?  There is a need to ponder on these questions to reach the bottom of the issue.   National media needs to be more responsible in side tracking the main issue of corruption. 

http://dkjain4970901092007.blogspot.in/2012/10/selection-of-ed-and-cmd-of-public.html