RBI directs BoR to sack Deputy MD

The Reserve Bank asked Bank of Rajasthan to remove its Deputy Managing Director,Deepak Saruparia.

The Reserve Bank asked troubled lender,Bank of Rajasthan–set to be acquired by ICICI Bank–to remove its Deputy Managing Director,Deepak Saruparia,charging him with violation of norms in certain property transactions related to the bank.

“Reserve Bank of India….has directed that Deepak Saruparia shall stand removed from the post of Deputy Managing Director in Bank of Rajasthan with immediate effect,” BoR said in a communique to BSE.

The RBI also directed that Saruparia “shall not in any way either directly or indirectly be concerned with or take part in the management of any Banking Company for a period of 5 years from June 12,2010.”

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The apex bank,which had issued a showcause notice to Saruparia a few months back,is understood to have charged Saruparia with irregularities in property transactions during 2002-2004 including that of an office building at Lower Parel.

The RBI is also understood to have found irregularities in the handling of certain corporate accounts during Saruparia’s tenure. Saruparia,who joined BoR in August 2004 was elevated to the post of DMD in 2007.

When contacted,Saruparia told PTI that imposing charges only against him was not proper as the decisions were not taken by him individually but collectively as they were approved by BoR’s board. He added that the alleged transactions were executed prior to his taking over as the DMD of the bank.