Moneycontrol
Last Updated : Mar 07, 2018 05:46 PM IST | Source: Moneycontrol.com

PNB scam fallout: Employee unions to hold dharna in front of Parliament on March 21

It has listed out demands to take tough action against those involved in the fraud.

Beena Parmar @BeenaParmar

The United Forum of Bank Employees Unions (UFBU) has decided to hold dharna in front of the Parliament on March 21 and has demanded a Joint Parliamentary Committee probe into the Punjab National Bank scam worth Rs 12,700 crore.

People's money for people's welfare, not for private corporate loot, said the notice by the umbrella union UFBU which has the support of total nine unions under it.

The dharna will go on from 10.30 am to 3 pm. Venkatachalam said the unions will be meeting FM Arun Jaitley after the dharna to submit their memorandum stating its demands and suggestions on the ongoing fraud.

It has listed out demands to take tough action against those involved, connected and responsible for the fraud, not singling out lower level bank staff and harassment of bank employees, not exclude RBI's role from investigation and a thorough probe by Joint Parliamentary Committee.

“We have written to the Finance Minister, too, to ensure junior employees are not being made the scapegoat as if they alone are responsible for the fraud. They must bring back Nirav Modi and Mehul Chokshi to India and take criminal action against them," said CH Venkatchalam, general secretary of the All-India Bank Employees Association (AIBEA).

He added that this incident is also being used unfairly to paint all Public Sector Banks (PSBs) in a bad light and has suggested a meeting of all stakeholders to reinstate the trust and confidence of the common public in general and banking clientele in particular.

Also Read: PNB scam: Bank's business hit as clients await investigation reports

On Monday, the Union withdrew the nationwide bank strike call on March 15, citing the present situation in the banking system following the massive fraud at PNB and the overall vitiated atmosphere in the sector.

The fraud came to light in January and the Delhi-based public sector bank informed the stock exchanges on February 14 about the Rs 11,400 crore (later increased to Rs 12,700 crore) worth of scam involving diamond and jewellery merchants Nirav Modi and his uncle Mehul Chokshi, owner of Gitanjali Group.

PNB has alleged that Modi and Chokshi connived with two bank officials to fraudulently receive Letters of Undertaking (LoUs) against which they sought loans at foreign branches of various other Indian banks since 2011. All of this went undetected as the online SWIFT messaging system, through which the LoUs were issued, were not linked to the bank's core banking solutions.

The Bank Union forum has questioned the efficacy of the bank’s monitoring system saying, “no one can hide the fact that there is gross negligence of control, supervision and monitoring as well as possibilities of complicity at various higher levels of management including the top PNB officials.”

They also demanded the ascertain the role of the RBI's monitoring and audit system saying “one cannot absolve RBI for its failure to play its role and responsibilities which would have otherwise unearthed these irregularities much earlier,” statement by the Union had said.
First Published on Mar 7, 2018 12:38 pm
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