Remember the derivative scam public interest litigation -between one Pravanjan Patra, an Orissa-based businessman and the Fixed Income Money Market Derivatives Association of India (Fimmda) ! On December 24, 2009, the Orissa High Court had directed CBI to probe alleged mis-selling of forex derivatives to exporters, violation of foreign currency laws such as the Foreign Exchange Management Act (Fema) and ‘offences of cheating, criminal conspiracy and fraud.’ “If the allegations are found to be true, then CBI would be busting a large financial scam affecting the economy of the country,” the court had observed.
On February 19, the SC had granted an interim stay on the Orissa High Court order for a Central Bureau of Investigation (CBI) probe into the alleged forex derivatives scam, after appeals by the Indian Banks Association (IBA) and Fimmda. It will hear all parties again in the first week of July.
It was also reported that CBI’s preliminary report includes data from the Reserve Bank of India that 11 banks had unrealised dues from customers of Rs 755.45 crore between April 2007 and December 2008, while the gross mark-to-market (revaluing assets at their current values) losses of the customers of 22 banks were Rs 31,719 crore between 2006 and 2008.
On February 19, the SC had granted an interim stay on the Orissa High Court order for a Central Bureau of Investigation (CBI) probe into the alleged forex derivatives scam, after appeals by the Indian Banks Association (IBA) and Fimmda. It will hear all parties again in the first week of July.
Now ,it is reported that Tirupur-based Forex Derivatives Consumer Forum, representing exporters who lost money on these,filed a petition before the Supreme Court (SC) to be included as co-respondents in the case.The business standard carried the quote of S Dhananjayan, a chartered accountant advising the forum “The petition also pleads to vacate the stay on the CBI probe ordered by the Orissa High Court, as only a thorough probe can go into the root cause of this massive scam and provide solution to this major crisis being faced by Indian exporters,” .
How the Axis Bank can do out of court settlement with Rajshree Sugars and Chemicals Ltd., which proves that Axis was also equally wrong in mis-selling derivatives to RSCL. All others who lost the cases should reopen it for further inquiry through CBI probe alleged mis-selling of these products, violation of foreign currency laws and offences of cheating, criminal conspiracy and fraud
Shadow on the Axis Culture Ref Business India 25/07/2010 Axis Bank has grown by acquiring business by aggressive pressure on the branches and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis Bank