Cosmos Bank: New age
Thuggery
(17/10/2018)
E-mail sent to Board
of Cosmos Bank and CGM, DCBS, RBI, Mumbai.
October
17, 2018
Board
of Directors
The
Cosmos Co-operative Bank Limited
Cosmos
Tower
Plot
No-6, S.No-132/B, ICS Colony
Ganeshkhind Road
Ganeshkhind Road
Pune
– 411007
Kind
Attn.:
Mr. Milind Kale – Chairman,
E-mail: milind.kale@cosmosbank.in
Mr
Suhas Gokhale,
MD: E-mail: suhas.gokhale@cosmosbank.in
Dr
Mukund Abhyankar,
Gr Chairman, E-mail: mukund.abhyankar@cosmosbank.in
Mr
Krishnakumar Goyal,
Director: E-mail: krishnakumar.goyal@cosmosbank.in
Sir,
Sub: Compulsory
reference of NPAs more than Rs.1 crore to Investigation agencies for criminality
in Cosmos Co-operative Bank.
This has reference to my numerous requests in
this regard made to you and your colleagues on the Board of Directors of the
Bank to come clean on the issues of NPAs. However, you have steadfastly refused
to offer any explanation.
I draw your attention to the instructions
given by the Finance Ministry about how to deal with NPA accounts more than
Rs.50 crore.
Finance Ministry on Tuesday, the 27th
February, 2018 had directed PSU Banks to probe all NPA accounts of over Rs 50
crore for possible fraud and accordingly report the cases to CBI. The
direction comes amid state-owned lender PNB reporting Rs 12,700 crore fraud
through alleged fraudulent misuse of letters of undertaking (LoUs) by
billionaire jeweller Nirav Modi and associates. Besides, other PSBs too have
approached investigating agencies as borrowers (as in the case of Rotomac Group
and Simbhaoli Sugars) have not returned loans.
Financial Services Secretary Rajiv Kumar,
through a tweet informed that managing directors of PSBs have been directed to
detect bank frauds and refer cases to the CBI - “PSB MDs directed to detect
bank frauds & consequential willful default in time & refer cases to CBI.
To examine all NPA accounts more than Rs 50Cr for possible fraud.”
PSBs have also been asked to involve
Enforcement Directorate (ED)/ Directorate of Revenue Intelligence (DRI) for
violations of PMLA, FEMA or Export Import norms.
Rajiv Kumar further said the Chief Vigilance
Officer of the Bank concerned will have to vet complaint and coordinate with
CBI for frauds exceeding Rs 50 crore. Also, banks will have to seek borrower
status report from Central Economic Intelligence Bureau (CEIB) on the account
turning NPA and CEIB will have to revert in a week. Banks have to involve
ED/DRI “if conditions warrant,” under the framework for timely detection,
reporting, and investigation of large value bank frauds.
Although, the Finance Ministry had referred
to PSBs, there is no reason to believe that Finance Ministry has exempted
Co-operative banks of Private Banks from this reporting.
I had already brought out 62 accounts that
are more than Rs.50 crore, the limit set by Finance Ministry to compulsory
investigation of criminality.
I am once again giving you the list of NPAs
known to me and informally admitted by you, Mr. Krishnakumar Goyal and Mr.
Mukund Abhyankar informally during some of the various meetings.
The limit of Rs.50 crore for possible
criminality is fixed considering the volume of loans and advances of the PSBs.
The same yardstick cannot be applied to a co-operative bank like Cosmos Bank.
Considering the magnitude of operations, the limit for co-operative Banks for compulsory
reference to CBI/EOW for investigation into the criminality is Rs.1 crore. The
Board of Cosmos Bank must refer these accounts to investigation agencies like
CBI/EOW and if required to ED/DRI.
The large accounts that deserve reference to investigation
agencies are listed below:
Table –
1
Rs. In Crore
Sr. No.
|
Particulars of Defaulter/Scamster
|
Amount in Rs.
|
1
|
Brainer
Impex Private Limited together with MBPY Exim Private Limited (became dead in
four months – Maleychandra Madhavchandra Biswas – the promoter is a relative
of top politician of that time as told by you from time to time for reasons
best known to you)
|
130.15
|
2
|
Euro
Multivision Limited: (became NPA within a year)
|
278.59
|
3
|
Euro
Décor Private Limited: (became NPA within a year)
|
82.63
|
4
|
Euro
Ceramics Private Limited: (became NPA within a year or so)
|
59.68
|
5
|
Euro
Merchandise (India) Limited: (became NPA within a year or so)
|
32.20
|
6
|
Other
entities in Euro Group: as confirmed by Directors Krishnakumar Goyal, Mukund
Abhyankar and Milind Kale (same fate as other Euro companies mentioned above)
|
445.00
|
7
|
Kalanikethan
Textiles And Jewels Private Limited: (within
6 to 9 months)
|
89.30
|
8
|
Rosary
Education Trust, Pune: within 1.5 years
|
46.50
|
9
|
Noble
Exchange Environment Solutions Pune LLP: (within 2 years)
|
31.21
|
10
|
Pratibha
Logistics Private Limited:
|
52.00
|
11
|
Pratibha
Shipping Limited:
|
157.51
|
12
|
Graf
Laboratories Private Limited: (within two years or so)
|
114.75
|
13
|
Krishna
Structural Steel (India) Limited: (within a very short time)
|
85.00
|
14
|
Roji
– Tasha Stampings Private Limited: (within a short time)
|
20.00
|
15
|
TKT
Hightek Cast Private Limited, Ahmadabad: (within 2 years)
|
113.94
|
16
|
S
K Wheels Private Limited: (within a short time)
|
109.47
|
17
|
Hollywood
Academy: (within a short time)
|
41.39
|
18
|
Dilip
Chhabria Design Pvt Ltd:(within a short time)
|
47.00
|
19
|
Parshuram
Forge Private Limited: (within a short time)
|
50.15
|
20
|
Country
Club Hospitality & Holdings P. Ltd: (within a short time)
|
60.00
|
21
|
Tricot
Impex Private Limited: (taken over from SBI in October 2015)
|
30.00
|
22
|
Sachin
Travels Limited: (within a short time)
|
23.95
|
23
|
Desai
Tusharkumar Nanubhai:
|
27.26
|
24
|
Shri
Kankeshwari Agro Pvt Ltd: (Rs.30.00 crore taken over from Bank of Baroda in October 2015)
|
32.85
|
25
|
Snehadeep
Structure Pvt Ltd.: (within a short time)
|
25.31
|
26
|
Shubhada
Tools Industries Private Limited: (within a short time)
|
22.70
|
27
|
Nectar
Prints Private Limited: (within a short time)
|
20.40
|
28
|
Citrus
Resorts Bangaluru Private Limited: (within a short time)
|
19.93
|
29
|
Little
Master Auto Cast Pvt Ltd.: (within a short time)
|
21.75
|
30
|
Janata
International: (within a short time)
|
18.48
|
31
|
Anoushka
Medicare & Diagnostics Pvt Ltd: (within a short time)
|
18.19
|
32
|
Pandit
Automotive Sangli Limited: (this loan was transferred from SBI in October 2015) – (within one and
half years)
|
16.94
|
33
|
Pandit
Automotive Satara Limited: (this loan was also transferred from SBI in October 2015) – (within one and half
years)
|
16.00
|
34
|
Manan
Autolink Private Limited: (within a short time)
|
58.20
|
35
|
Saptasatij
Metatech Private Limited: Rs.102.62 crore (within a short time)
|
102.62
|
36
|
Tristar
Cars Private Limited: (This company has satisfied all loans of Tata Capital
Finance amounting to Rs.1.58 crore in Match 2016. The Cosmos bank has written
off Rs.50.35 crore meekly during FY 2016-17 and 2017-18. The loan was
sanctioned in March 2013)
|
50.35
|
37
|
Shakti
Bio Science Limited: (Rs.50.26 crore taken over from Union Bank of India in
March 2013 to eventually write off in Cosmos Bank’s books)
|
42.58
|
38
|
Rotoflow
Polymers Private Limited: (Rs.17.96 crore written off in FY 2017-18, the
balance in earlier years. Loan sanctioned in December 2013 onwards.)
|
49.90
|
39
|
K
A Malle Pharmaceuticals Limited:
|
15.23
|
40
|
Duke
Corporation Limited: (The loan was mainly utilized to satisfy loan of
Rs.15.00 crore from Export Import Bank of India and Rs.20.00 crore from Citi
Bank in July – November 2010 and the rest is the history)
|
50.00
|
41
|
Masscorp
Limited: (within a short time)
|
25.00
|
42
|
Dhanshree
Infratech Private Limited:
|
6.80
|
43
|
Shubh
Tex Production Pvt Ltd: (within a short time)
|
7.90
|
44
|
Bogus
vehicle loans at various Branches: (instant loss)
|
25.00
|
45
|
Surface Graphics Private Limited:
|
8.21
|
46
|
Shirish Polychem Limited:
|
14.00
|
47
|
Crystal Clear Veg Oil Refinery Pvt Ltd.:
within 4 months)
|
23.63
|
48
|
Mirco Dynamics Pvt Ltd.:
|
10.00
|
49
|
Little Woods Nursery: (in 8 months)
|
00.70
|
50
|
Woodstock Helicopters Pvt Ltd:
|
12.31
|
51
|
Goenka Omprakash Basantla:
|
4.80
|
52
|
Glaacia Cosmetics Pvt Ltd: (within a year)
|
2.73
|
53
|
Lokhandwala Mohammad Abdul
|
14.00
|
54
|
Arya Distributors
|
2.61
|
55
|
Lokseva Pratisthan
|
0.76
|
56
|
Ranjana Newspirnt Imports
|
1.22
|
57
|
Balaji Dhanya Bhandar (Pro. Deeparan
Chowdhary )
|
2.81
|
58
|
Control Automation Pvt Ltd.
|
2.11
|
59
|
Sumo Industries P. Ltd.
|
5.12
|
60
|
Balaji Cars Pvt Ltd.
|
13.45
|
61
|
Patel Anil Kanjibhai
|
14.50
|
62
|
New Phalton Sugar Works Limited
|
10.12
|
|
Total
|
2,916.89
|
The
above list is only illustrative and not exhaustive. There are many more
NPA skeletons hidden in the cupboards of the Board of Directors of the Bank and
they are slowily tumbling out.
You are therefore requested to inform the
shareholders:
- Whether Cosmos Bank has Vigilance Department?
- If YES, who is the head of such Vigilance Department and what has the Vigilance Officer done in these cases?
- If Bank does not have any Vigilance Department, what are the lawful and palatable reasons for the same?
- Have you referred these accounts that have become NPAs within a short span of 4 months to 13 months with nil or negligible collateral security to Investigation agencies like CBI/EOW, ED/DRI?
- If you have referred to Investigation agencies, kindly provide the details of such reference.
- If you have not yet referred these accounts to Investigation agencies as is mandated by the Finance Ministry, kindly provide the lawful, logical and palatable reasons for the same.
Since so far you have not responded to any of
my queries, I am releasing this to e-mail in the social media to appraise and
apprise the Depositors as well as Shareholder about your demonstrated
discomfort and revealed reluctance in going after the scamsters and their
collaborators within the bank.
I am also causing this matter be known to the
appropriate authorities to wake them up from their pretended slumber.
Thanking you.
Yours faithfully
Kishor
Satwick
CC:
1.
Shri
R. L Sharma, Chief General Manager, Department of Cooperative Bank Supervision,
Reserve Bank of India, Central Office, C-9, 1st floor, Bandra-Kurla Complex,
Bandra (East), Mumbai – 400 051, E-mail: dcbscocgm@rbi.gov.in
– for initiating immediate action.