An urge to RBI for cancelling the Banking License of Kotak Mahindra Bank: Dr. Santosh Kumar Bagla

by Suman Gupta

Dr. Santosh Kumar Bagla’s family has sought the cancellation of the banking licence of Kotak Mahindra Bank Ltd for its role in a scam of forgery of documents for which an FIR No. 0120/2019 dated 19/10/2019 has been registered at PS Barakhamba Road, New Delhi against Kotak Mahindra Bank and six other accused including Mr. Uday S. Kotak, MD & CEO.

The Bank was found as involved in unethical and illegal practices for recovery of loan by way of forging documents/papers and inducement, misrepresentation, false assurances to customers for sanctioning loan and in this process, there were unlawful gains directly or indirectly to Bank while its clients suffered losses of reputation and business loss.

Dr. Santosh Kumar Bagla’s family has demanded from Reserve Bank of India vide their letter dated 01.11.2019 for removal of Mr. Uday S. Kotak from the post of MD & CEO of Kotak Mahindra Bank Ltd. and also from the post of Chairman of IL&FS as a person facing criminal cases cannot be considered suitable for any responsible post unless acquitted of the charges.

An FIR No. 0120/2019 dated 19/10/2019 has been registered at PS Barakhamba Road, New Delhi against Kotak Mahindra Bank Ltd and six other accused including Mr. Uday S. Kotak, MD & CEO, for their role in a scam of forgery of documents as held by a Metropolitan Magistrate Court at New Delhi, vide order dated 14.10.2019. The Ld. Magistrate has taken view that matter requires investigation by police as several documents are to be collected and verified and number of  persons are to be examined.

The Bank was found as involved in unethical and illegal practices of recovery of loan by forgery of documents/papers and inducement, misrepresentation, false assurances to clients for sanctioning loan and, in this process, there were unlawful gains directly or indirectly to bank while its clients suffered losses of reputation and business loss.

An FIR No. 0120/2019 dated 19/10/2019 has been registered at PS Barakhamba Road, New Delhi against Kotak Mahindra Bank Ltd and six other accused including Mr. Uday S. Kotak, MD & CEO, for their role in a scam of forgery of documents vide order dated 14.10.2019 of MM Patila Court, New Delhi who has taken view that as matter requires investigation by police, several documents are to be collected and verified and number of persons are to be examined.

The officials of the Bank in collusion and in connivance with each other, hatched a conspiracy and forged and fabricated documents including one affidavit and a power of attorney which were alleged to have been executed by one Bagla’s family member Mr. Bhupendra Bagla, for mortgaging leased property against a unsecured loan and on the basis of which the bank initiated recovery proceeding before the Ld. DRT.

The Bank was found as involved in unethical and illegal practices of recovery of loan by forgery of documents/papers and inducement, misrepresentation, false assurances to clients for sanctioning loan and, in this process, there were unlawful gains directly or indirectly to bank while its clients suffered loss of reputation and business.

The PMO has directed the Secretary, Department of Financial Services (Banking Division) for action as appropriate in the matter of complaint against Kotak Mahindra Bank Limited, its MD & CEO Mr. Uday Kotak and other senior officials for alleging conspiracy, fraud and forgery of some documents.