Slowdown or not, these India’s banks and shadow banks are in trouble
PMC Bank crisis results in the death of its depositors
Lakshmi Vilas Bank and the case of missing FDs
The troubles of this Chennai-based bank have just begun. Its problems started with Religare Finvest which is facing its own defaults and other troubles. It blamed the bank of eating away their fixed deposits.
It is not just the deposits that were under the scanner but it also spoke of a larger conspiracy to misappropriate their funds with the bank. The directors and the top management of Laxmi Vilas Bank are being investigated by the police over these allegations.
As the investigation plays out, RBI has stalled the possible merger of this bank with yet another troubled shadow bank — Indiabulls Housing.
Ranbaxy brothers stripped Religare’s assets and lay it bare
When Malvinder Singh and Shivinder Singh — the brothers who were former owners of Ranbaxy — aren’t fighting with each other, they are scamming others. A year-long probe on round-tripping funds of the company after their exit culminated into their arrest last month.
Religare Finvest alleged the brothers of stripping the company bare have hoodwinked the RBI to strip it of a massive ₹47,958 crore. And, this is not the first time they have pulled this off. When they sold pharma company Ranbaxy to Japanese major Daiichi Sankyo, they did something similar. However, the case ended in a settlement worth over ₹2,4000 crore.
DHFL and the case of vanishing senior citizen pensions
Most Deewan Housing Finance’s depositors are senior citizens. As the fraud allegations and fund misappropriation in the shadow bank has to come to light – so did tales of woe.
Many of its depositors have been banking on their savings for healthcare and other expenses. Now that money is stuck as the matter is investigated. The allegations started doing the rounds last year after IL&FS fell in June. Since, DHFL stopped making their monthly interest payments—ballooning its liquidity problems into a crisis.
Now, the shadow bank is being cornered – Reliance Nippon asset management company has filed a case against them. Also, the Enforcement Directorate is investigating into the bank’s links with Iqbal Mirchi, an aide India’s most wanted Dawood Ibrahim.
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