'Mama-bhanja fraud started under Manmohan grew 50 times under Modi'

National | Feb. 16, 2018, 6:09 p.m.

New Delhi, Feb 16: A former government nominee director of Allahabad Bank, Dinesh Dubey, has added fuel to Nirav Modi scam fire. Dubey has alleged that he he was pressurised by the UPA-2 government in 2013 to sanction loan to Geetanjali Gems (owned by Mehul Choksi, maternal uncle of Nirav Modi). However, Dubey refused to bow down and resigned instead. Dubey added that the illegal loan sanctions that started under UPA have multiplied 50 times under NDA. Both ED and CBI are now after Choksi and Modi for the Rs 11300-cr PNB scam   

Dubey has said that at the Allahabad Bank board meeting on September 14, 2013 a proposal to sanction Rs 50-crore loan to Geetanjali Gems came up, which he opposed. At the meeting he said that the company should first clear the earlier Rs 1500 crore loan before taking new loan. The discussion abruptly ended. Dubey said that he had put a dissent note. "When I opposed the Gitanjali Gems loan proposal, my fight with Allahabad Bank board got really intense and dirty. They tried to persuade, mollify and even threaten me but I said such loans to the corporates without recovery will only add to more non-performing assets. I also wrote to the Reserve Bank of India and secretary, financial services in the Ministry of Finance in my effort to warn them of a massive scam looming large. My request was to take immediate preventive action and keep a watch on all the companies linked to Choksi's firm, as they were accumulating loans without making payments to the bank," Dubey was added as saying by Firstpost.

Dubey said that after his dissent he was pressurised from various government quarters to resign. "The top officials in the Ministry of Finance and at Allahabad Bank wanted me to resign. I was told to mend my ways. I said the government had appointed me to keep a watch on the bank's activities and prevent any wrongdoings. If I can't do my job, it is better I should go. Then, I was told if I was ready to put up my resignation I must highlight that I was doing it for health reasons. I did that and resigned in February 2014," added Dubey

However, before resigning Dubey then wrote an email to the then RBI deputy governor KC Chakrabarty alleging  "... a meeting of MCBOD of Allahabad Bank was held on 14 September, 2013. Regarding agenda item No 4/6 pertaining to M/S Gitanjali Jewelers for sanction of Rs 1500 cr+50 cr. I have not given my consent. But, they ignored my dissent note and sanctioned the loan. This is for your information and necessary action please."

"I had told the board that Choksi and his firm will turn into a big scam one day. Even if they had listened to me, this scam could have been avoided. I remember the present managing director of PNB was then serving as the general manager with Allahabad Bank and he was aware of what was happening inside the shadowy walls of the board meeting," added Dubey.


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Feb. 16, 2018, 6:09 p.m.