Canada faces serious foreign interference issues, but these challenges must not be weaponized to unfairly target friendly and important allies like India.
In Episode 1544 of CutTheClutter, Editor-in-Chief Shekhar Gupta looks at some top economists pointing to the pitfalls of ‘currency nationalism’ with data from 1991 to 2004.
Among 19 Indian firms sanctioned by US Treasury Dept was Lokesh Machines Ltd accused of coordinating with 'Russian defence procurement agent to import Italy-origin CNC machines'.
While we talk much about our military, we don’t put our national wallet where our mouth is. Nobody is saying we should double our defence spending, but current declining trend must be reversed.
The CBI investigation pinpoints the time line of the frauds starting from the 8 LOU’s issued from 09/02/2017 and a further 293 lou’s issued subsequently in continuation of the fraud perpetration.So it is as clear as daylight that the loot has taken place under the watch of the ‘Modi Government’.
Do the self anointed chowkidars aware of these facts or just relying on the ‘Whatsapp messages’they receive on their mobiles?
Everything is very open with a really clear clarification of the challenges.
It was truly informative. Your site is very useful.
Many thanks for sharing!
PNB fraud has seen day light when an alert bank employee alarmed the officials, if not it would have continued un noticed till next elections, as election funding is done by round tripping. Just a mistake of not taking care of the last man in the chain, it has costed so much for crony politicians. God knows how many frauds of round tripping of bank money is playing in our elections in our country. May God save…
Political class has lost all credibility, they start indulging in mud slinging exercise on the drop of a hat. Politicising everything has become their culture. Instead of taking ownership and bringing in systematic changes in business processes, they prefer to play blame game.
Is there any carry forward LOU of the UPA ? If not, stop making laughable excuses and, instead explain why the loot has happened and steps you are taking to stop such happenings in future. It is equally ridiculous of your attempt to compare Manu Singhvi renting out his property or Rahul’s going out to to N Modi’s exhibition with that of N Modi being present in the company of our PM. Do not consider us to be fools.
2011 is immaterial. WHY?
The basic point is this : – If the #LoUs were issued in 2011, the #liabilities under them must have been repaid/got #extinguished, because an LoU cannot have #indefinite #tenor (#validity). True, it’s possible to issue a #Revolving_LOU with a #revolution_clause, which means that once the earlier liabilities are extinguished, the value of the LoU is #reinstated. The effect is virtually the same as a non-revolving LoU. Unless the previous liabilities are extinguished, no further payments under the same is possible. So, it is very much clear that all the #outstandings (aggregating Rs.11k crores+, and counting) under LOUs are #current_dues, which the #Modis and #Choksis got the guts to default, just because they had blessings from the powers that be, and got safe passage before the #PNB #discovered the #fraud, and lodged an #FIR with #CBI!
Basic banking rules were disregarded like transfer after 1 to 2 years.
Swift has the highest standards of security. You have a person who makes an entry into the system and another person authorizes it. For large amounts authorization is required at several levels by several people.
Extremely basic things like reconciliation with the Nostro accounts of 2 banks, reconciliation between CBS and SWIFT, revenue and LOU was not done. Plus audits by internal auditor, external auditor, and RBI failed to unearth anything.
It is very difficult to digest the fact that even though there is strict internal audit and RBI audit ,
this type of big scams are happening May be big fishes are involved in this scam.
Rules r for fools is a common slogan in govt offices yes it seems right now as rich high profile highly corrupt can get things done at the cost of common tax payer accountability of wrong doers promptly &severe punishment can only deter such immoral acts
even if swift were not recorded/posted into CBS, when on due date the customer pays to the foreign bank, that time foreign bank would have sent confirmation/intimation to PNB branch and may be with bank charges, so that time PNB branch CBS staff would have come to know that, that money received by foreign bank against a non posted swift. Still I am not comfortable to accept that swifts were not posted in cbs and 2 staff have separate swift message systems.
the author says the LOUs are issued in February 2017, how come people were able to complain in 2015 before the LOUs were issues. clearly this scam could have probably started much earlier probably UPA years and no one noticed it, clearly due diligence were deliberately overlooked by banks who were giving money to this people. looks like similar cases could soon emerge and atleast 5times tthe money reported will be unearthed if dug deep.
at my local bank town, these fcuking manager tried to delay my student loan process by six months because i was not willing to pay bribe. 50% of public bank emplayees specially managers in india are assholess
The complaints made in 2015, and onwards, weren’t about LOUs – they were about being personally defrauded by Choksi and his lot.
Case against Gitanjali group allegedly involves 143 LoUs and 224 foreign letters of credit.
Given the large sums involved, there ought to be a standard procedure by which the bank to whom the comfort letter is issued seeks confirmation from a level above the issuing branch. Collusion may still be possible, but it would widen the circle of officials who need to be compromised. 2. The Indian banking system needs to think of ways to deal effectively with defaulting tycoons who flee the country. More collateral should be insisted upon. 3. The diamond industry is especially difficult to deal with. Better safeguards need to be in place. Or leave this space for private sector banks to occupy.
The CBI investigation pinpoints the time line of the frauds starting from the 8 LOU’s issued from 09/02/2017 and a further 293 lou’s issued subsequently in continuation of the fraud perpetration.So it is as clear as daylight that the loot has taken place under the watch of the ‘Modi Government’.
Do the self anointed chowkidars aware of these facts or just relying on the ‘Whatsapp messages’they receive on their mobiles?
Everything is very open with a really clear clarification of the challenges.
It was truly informative. Your site is very useful.
Many thanks for sharing!
PNB fraud has seen day light when an alert bank employee alarmed the officials, if not it would have continued un noticed till next elections, as election funding is done by round tripping. Just a mistake of not taking care of the last man in the chain, it has costed so much for crony politicians. God knows how many frauds of round tripping of bank money is playing in our elections in our country. May God save…
Whether any contingent liability is shown in the balance sheet ended 31/03/2017
Political class has lost all credibility, they start indulging in mud slinging exercise on the drop of a hat. Politicising everything has become their culture. Instead of taking ownership and bringing in systematic changes in business processes, they prefer to play blame game.
Is there any carry forward LOU of the UPA ? If not, stop making laughable excuses and, instead explain why the loot has happened and steps you are taking to stop such happenings in future. It is equally ridiculous of your attempt to compare Manu Singhvi renting out his property or Rahul’s going out to to N Modi’s exhibition with that of N Modi being present in the company of our PM. Do not consider us to be fools.
2011 is immaterial. WHY?
The basic point is this : – If the #LoUs were issued in 2011, the #liabilities under them must have been repaid/got #extinguished, because an LoU cannot have #indefinite #tenor (#validity). True, it’s possible to issue a #Revolving_LOU with a #revolution_clause, which means that once the earlier liabilities are extinguished, the value of the LoU is #reinstated. The effect is virtually the same as a non-revolving LoU. Unless the previous liabilities are extinguished, no further payments under the same is possible. So, it is very much clear that all the #outstandings (aggregating Rs.11k crores+, and counting) under LOUs are #current_dues, which the #Modis and #Choksis got the guts to default, just because they had blessings from the powers that be, and got safe passage before the #PNB #discovered the #fraud, and lodged an #FIR with #CBI!
right sir
Basic banking rules were disregarded like transfer after 1 to 2 years.
Swift has the highest standards of security. You have a person who makes an entry into the system and another person authorizes it. For large amounts authorization is required at several levels by several people.
Extremely basic things like reconciliation with the Nostro accounts of 2 banks, reconciliation between CBS and SWIFT, revenue and LOU was not done. Plus audits by internal auditor, external auditor, and RBI failed to unearth anything.
Sheer incompetence at its best.
It is very difficult to digest the fact that even though there is strict internal audit and RBI audit ,
this type of big scams are happening May be big fishes are involved in this scam.
Rules r for fools is a common slogan in govt offices yes it seems right now as rich high profile highly corrupt can get things done at the cost of common tax payer accountability of wrong doers promptly &severe punishment can only deter such immoral acts
Law governs the poor but fhe rich govern law..whether it is manmohan orModi
When Lou was kept on issuing without taking collateral security who is the minister or bureaucrat involved. CBI must investigate this fraud
even if swift were not recorded/posted into CBS, when on due date the customer pays to the foreign bank, that time foreign bank would have sent confirmation/intimation to PNB branch and may be with bank charges, so that time PNB branch CBS staff would have come to know that, that money received by foreign bank against a non posted swift. Still I am not comfortable to accept that swifts were not posted in cbs and 2 staff have separate swift message systems.
Please recheck the dates mentioned
Some of the dates are last week of January 2018
If correct- When did Mr Shetty retire ?
the author says the LOUs are issued in February 2017, how come people were able to complain in 2015 before the LOUs were issues. clearly this scam could have probably started much earlier probably UPA years and no one noticed it, clearly due diligence were deliberately overlooked by banks who were giving money to this people. looks like similar cases could soon emerge and atleast 5times tthe money reported will be unearthed if dug deep.
at my local bank town, these fcuking manager tried to delay my student loan process by six months because i was not willing to pay bribe. 50% of public bank emplayees specially managers in india are assholess
The complaints made in 2015, and onwards, weren’t about LOUs – they were about being personally defrauded by Choksi and his lot.
Case against Gitanjali group allegedly involves 143 LoUs and 224 foreign letters of credit.
Given the large sums involved, there ought to be a standard procedure by which the bank to whom the comfort letter is issued seeks confirmation from a level above the issuing branch. Collusion may still be possible, but it would widen the circle of officials who need to be compromised. 2. The Indian banking system needs to think of ways to deal effectively with defaulting tycoons who flee the country. More collateral should be insisted upon. 3. The diamond industry is especially difficult to deal with. Better safeguards need to be in place. Or leave this space for private sector banks to occupy.