IBA: Allegations against BOM chief inaccurate, arrest is unwarranted

MUMBAI: The Indian Banks’ Association (IBA) on Friday condemned the arrest of Bank of Maharashtra (BOM) chief Ravindra Marathe, along with his officials, on charges of illegally sanctioning a loan of ₹100 crore for a real estate project of a DSK Group company.

The arrest was unwarranted and the allegations of violating Reserve Bank of India guidelines made against the officials are inaccurate, the industry body said at a press conference after a meeting of bankers.

“All bankers unanimously expressed anguish and concern for what has transpired for bona fide decisions taken in discharge of official duties,” said VG Kannan, CEO, Indian Banks’ Association. Kannan said IBA would submit a memorandum proposing the setting up of a committee under an RBI official to give clearance to allow proceedings against officials under investigation. The memorandum will also propose an indemnity cover to provide legal assistance for these officials.

“The bankers while condemning this said that IBA should lead a delegation and make a representation to the highest authority by means of a proper memorandum,” Kannan said.