RBI assigning K V Kamath to restructure and settle disputes on huge loans of Corporates is like asking the fox to guard the chicken

K V Kamath - One more dubious appointment that makes one wonder who is running the Finance Ministry?

K V Kamath - One more dubious appointment that makes one wonder who is running the Finance Ministry?
K V Kamath - One more dubious appointment that makes one wonder who is running the Finance Ministry?

Corrupt persons always have their own way to stick to anybody coming to power. One such recent blatant example is the Reserve Bank of India (RBI) appointing ICICI Bank’s ex-CMD K V Kamath as the Head of the Expert Committee on Resolution Framework. The main agenda of this committee is to look into the guidelines of settling disputes on huge loan defaults. How was Kamath selected by the RBI when he is facing CBI probe on approving huge loan frauds from ICICI Bank to Videocon Group and NDTV?

PGurus have written a lot of articles on Kamath involving loan frauds. His disciple and former CEO of ICICI Bank Chanda Kochhar has already confessed to the CBI and the ED that all controversial loans issued by her are with the approval of the Kamath-headed committee. It is well known that Kamath was a Dhirubhai Ambani man and he was the family arbitrator of Mukesh and Anil Ambani’s division of Reliance companies in 2006[1].

In a letter to RBI Governor Shaktikanta Das, AIBEA General Secretary CH Venkatachalam alleged that Kamath was also part of the committee, along with Chanda Kochhar (former MD & CEO), that approved loans to the Videocon Group.

The majority of the loans disbursed by ICICI Bank to Videocon and NDTV which is now under CBI, ED, and Income Tax radar were approved during the blessings of Finance Minister Chidambaram and Congress President Sonia Gandhi during the UPA regime[2].

Grand old banker Kamath is darling of all Corporates and these Corporates have pressurized the BJP Government to protect Kamath from CBI.  All India Bank Employees Association has now come out strongly against RBI’s new assignment given to tainted Kamath who is facing CBI and ED probe for huge loan frauds. In a letter to RBI Governor Shaktikanta Das, AIBEA General Secretary CH Venkatachalam alleged that Kamath was also part of the committee, along with Chanda Kochhar (former MD & CEO), that approved loans to the Videocon Group.

Loans approved to the Group are now under the lens of the Central Bureau of Investigation. “We hope and wish RBI to review the decision and reconstitute the Expert Committee,” said Venkatachalam[3].

In a nutshell, RBI appointing KV Kamath to restructure huge loans and loan disputes of Corporates is simply like asking the fox to guard the chicken.

References:

[1] Who is planting news on ICICI Banker K V Kamath to be the next Finance Minister? Jun 1, 2020, PGurus.com

[2] Chidambaram knew the ICICI Bank – Videocon Rs.40,000 crore loan and other dubious dealsApr 4, 2018, PGurus.com

[3] AIBEA seeks reconstitution of K V Kamath’s resolution panelAug 10, 2020, Businessline

Team PGurus

5 COMMENTS

  1. PM Modi has lost his credibility when he selected late Arun Jaitley, a lawyer by profession and a party spokesman as his Finance Minister even before the election results were out in May/June 2014 and the then Punjab CM Prakash Sign Badal announced Jaitley’s name as FM!!

    PM lost his image when Dr.S.Swamy in Sept 2015 wrote a letter to him cautioning about Indian Economy going Southwards and Dr.Swamy proved correct even to this day.

    PM Modi listens to his selected few dubious top industrialists from his home state and he is hell bent on moving financial capital of India Mumbai to his home state Gujarat sooner than later. Ambani and Adani’s are the Indian Versions of Amazon and Google. In fact Mumbai belongs to Ambani and Ahmadabad belongs to Adani!

    PM Modi appointed dummies in FM and preferred present incumbent Governor just to achieve his objectives including sweeping under the carpet/ waive off or write off massive NPAs and reduce Banks into municipalities.

    Finally PM Modi proved that BJP does not have Economic Policies of its own, corporatized party does not have financial experts/Dr.Swamy’s formulas/books/letters/suggestions are ancient and are of no use to his opaque financial back hand dealings with Nehru-Gandhi Dynasty, corrupt rogues to run BJP and win election after elections, bringing back back money has gone out of the window/his mind. Hence Dr.Swamy or any other person in BJP do not fit into his scheme of things!! Only turncoats, outsiders/ imported MBA financial diploma or degree holders are preferred by him. PM Modi proved that in 72 years Indian has produced Dr.Maun Mohan Singh as the best Economist cum PM.

    Tainted ICICI Kamat’s preference is to fix future course of BJP’s election expenses!
    PM Modi still feels that our country lacks talent and educated wise men.

    Sorry to PM Modi’s (andhe-) Bhakths!!

  2. If, what the article says is true, then I am really depressed and dismayed. What happened to the statement our honorable PM NA KHAUNGA NA KHANE DUNGA. DR Subramanian Swami in one of his articles have questioned the honesty of the present RBI Governor and identified him as a Chuddu’s man. Therefore, RBI Governor choosing Kamath should not surprise anyone. But our PM not taking notice of this is quite depressing.

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