This bank CMD’s head rolls after he’s neck-deep in dirt

Gujral, despite repeated attempts, couldn’t be reached for comment. A family lawyer Amarjeet Singh Chandok declined to comment. The Indian Express then hand-delivered a questionnaire listing the key charges to his wife at their south Delhi residence a week ago. But no response was received.

For the record, Minister of State for Finance Anandrao Adsul told The Indian Express: ‘‘It is true Mr Gujral has proceeded on leave which has been sanctioned by me and sent to the Finance Minister. There are some issues which needed to be looked into but unless these are examined, I cannot comment on anything.’’

The key issues being examined, as per official records:

• In November last year, violating prescribed norms, Gujral wrote to the bank’s Chief Vigilance Officer that all vigilance issues against staff be forwarded to him and that his clearance was required before the cases went to the Chief Vigilance Commissioner (CVC).

• Of the 120 senior officers above the rank of Chief Manager in the bank, 110 had some sort of vigilance case slapped against them to apparently ‘‘keep them in check.’’

• Once these vigilance cases were routed to Gujral, he is said to have sat on them despite reminders from the CVC. When the CVC’s deadline of September 30 passed without any response from Gujral, the Finance Ministry decided to step in.

• Gujral appointed brother-in-law B M S Bakshi as PSB’s Deputy General Manager in charge of advances and inspection, both key postings where favours could be doled out. Gujral allegedly waived a serious penalty against Bakshi recommended by the CVC for ‘‘financial impropriety’’ in loans advanced to one Eggro Papers and Moulds while he was zonal manager in Lucknow. This prompted the Ministry to send Gujral a ‘‘displeasure note’’ in May last year.

• Another officer, Manjit Singh, was appointed as Assistant General Manager, Vigilance, even though he had vigilance cases pending against him and was also secretary in the chairman’s office.

• The bank’s record, too, hardly helps his case: Deposits rose in 2002-03 by 1.73% compared to an industry average of 6.61%. Ratio of NPAs to net advances was as high as 11.59% compared to the average of 5.12%.

• Gujral’s track record is also under scrutiny. In 1996, when he was general manager in PSB, CBI raided his house in connection with a scheme for an auto company through which advance booking for cars was done to get the company funds to the tune of Rs 36 crore.

Gujral and his colleague Gurpal Singh allegedly failed to build in safeguards in the scheme which caused a loss to the bank. While Gujral got away with a caution notice—the CVC wasn’t able to build a case—Gurpal was chargesheeted and suspended.

• In 1999, the CVC recommended to the Ministry of Finance to send Gujral a caution notice to ‘‘to be more vigilant and careful in discharge of his duties.’’ He got another caution notice after he was appointed Executive Director in the Corporation Bank in October 1999.

• His vigilance records also show quick and questionable approval of loans to several companies, some of

which have allegedly turned NPAs.

• Loans of Rs 5 crore to a compute company which has now closed down. Charges against Gujral were dropped as they were not substantiated

• Loan of Rs 4 crore to an aluminium company despite the company being in BIFR. Responsibility was fixed on other officials and Gujral got away.

• Loans of limit enhancement for Gujral Finance Pvt Ltd allegedly owned by his cousins from Rs 9 lakh to Rs 1.50 crore in just four days.