Bagla family seeks Kotak Mahindra banking licence cancellation

The family of Santosh Kumar Bagla has sought the cancellation of the banking licence of Kotak Mahindra Bank Ltd for its role in a scam of forgery of documents.

FIR No. 0120/2019 dated October 19 has been registered at Barakhamba Road police station in Delhi against Kotak Mahindra Bank and six other accused including Uday Kotak, MD & CEO.

"The Bank was found as involved in unethical and illegal practices for recovery of loan by way of forging documents/papers and inducement, misrepresentation, false assurances to customers for sanctioning loan and in this process, there were unlawful gains directly or indirectly to Bank while its clients suffered losses of reputation and business loss," statement said. Santosh Kumar Bagla's family has demanded from RBI through a letter dated November 1, for removal of Uday Kotak from the post of MD & CEO of Kotak Mahindra Bank and also from the post of Chairman of IL&FS as a person facing criminal cases cannot be considered suitable for any responsible post unless acquitted of the charges.

The statement said the officials of the Bank in collusion and in connivance with each other, hatched a conspiracy and forged and fabricated documents including one affidavit and a power of attorney which were alleged to have been executed by one Bagla's family member, Bhupendra Bagla, for mortgaging leased property against a unsecured loan and on the basis of which the bank initiated recovery proceedings.