IBA: Al­le­ga­tions against BOM chief in­ac­cu­rate, ar­rest is un­war­ranted

Hindustan Times ST (Mumbai) - - HTNATION - Gopika Gopaku­mar

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.

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