Alleged Breach of RBI Guidelines: Rs 20.3 Crore Fund Funneling Scandal Involving Apex Bank

GUWAHATI: In a sensational violation of Reserve Bank of India (RBI) guidelines, the Assam Co-operative Apex Bank is alleged to have orchestrated transactions amounting to a staggering Rs 20.3 crore between April 5 and June 20. The funds were allegedly funneled to North East Plantation and Commercial Private Limited, a company associated with Rajesh Bajaj, a figure previously scrutinized by the Central Bureau of Investigation (CBI) in connection with the notorious Saradha chit fund scandal.

The financial saga unfolded with a series of payments made to Bajaj's company, raising eyebrows. A substantial Rs 6 crore was transferred on April 5, followed by a notable Rs 3 crore on April 18, a generous Rs 2 crore on April 28, and a substantial Rs 4 crore on May 2. Additional payments of Rs 95 lakh on June 2, Rs 80 lakh on June 9, and a jaw-dropping Rs 3.55 crore on June 20 followed. These transactions were carried out under the dubious label of "Demand Bill Purchase," a method explicitly prohibited by the RBI through a circular issued on July 1, 2015.

The "Demand Bill Purchase" approach was originally designed to allow banks to come to the financial rescue of customers by purchasing their checks in times of urgency and then releasing funds based on the customer's transaction history. This mechanism's relevance has diminished with the widespread availability of net banking, which allows customers quick access to funds via check clearance, regardless of their location.

According to Clause 5.5 of the 2015 "Master Circular" on customer service by the RBI, local banks were permitted to acquire checks and earn profits based on a customer's transaction history only if the bank's check clearance processes were halted for specific reasons. These reasons primarily concerned checks from governmental bodies and well-known corporations. Notably, no recent cases of check clearance process interruptions had been reported. Strikingly, Bajaj's company received money against checks issued by other banks, rather than the Apex Bank, and the Apex Bank astonishingly transferred funds directly to Bajaj's enterprise using the "demand bill purchase" technique.

Adding intrigue to the situation, Bajaj reportedly has close ties with the Apex Bank's chairman, Biswajit Phukan, who also happens to be a BJP MLA representing the Sarupathar constituency. While Phukan denies any undue connection with Bajaj, other than the fact that the businessman hails from the constituency he represents in the legislative assembly, their social media interactions suggest otherwise. Furthermore, the report revealed that the BJP leader acknowledged Bajaj's alleged fraudulent activities, including depositing checks from various banks and withdrawing funds without proper clearance. Branch manager Bikash Ranjan Das was implicated as a co-conspirator in this elaborate scheme and has since been suspended. Phukan emphasizes that strict retribution awaits those involved in this alleged fraud.

Bajaj openly admitted to receiving the money but firmly maintains that it was all part of a legitimate business deal, vehemently denying any wrongdoing in the process. This scandal has sent shockwaves through the Indian financial landscape, raising serious concerns about the adherence to financial ethics and RBI regulations.

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