BMW for Chairman; thumbing nose at share-holders

Angry shareholders, unsatisfied customers and grieving employees- everything seems to go wrong for Delhi Nagrik Sahakari Bank. But not so for the Directors and the former Chairman Jai Bhagwan as the latter is even said to move around in a BMW.

Delhi based UCB has a whopping 30 percent in NPA. It is currently under an administrator who has been managing its affairs since 2014. The Bank has 14 branches in the National Capital Region.

Anil Kumar Gaur, one of the shareholders who filed a petition in Delhi High Court, alleging irregularities said to Indian Cooperative “With the new board established in 2011 liberally disbursing loans on fake documents from the bank’s Lajpat Nagar branch amounting to Rs 100 crore and the reduced business mix of the bank at the time, there were no signs of improvement in the situation”.

While accusing the former Chairman Jai Bhagwan, he said under his tenure more than 40 people were recruited wrongly and 62 employees got promotion. Gaur cited the recent judgment announced by Registrar of Cooperative Society which reads “50,000 penalty on each board member for disbursing loans on fake documents and Rs 5 lakh penalty for the whole board for recruiting staff wrongly.

It is being reported that former Chairman of the bank Jai Bhagwan who was earlier residing in Chirag Delhi on rent and working as an assistant teacher in a primary school presently owns his own house in the posh Saket area and an expensive BMW Car.

When Indian Cooperative Correspondent phoned former Chairman Jai Bhagwan and CEO Upendra Garg both of them did not pick up the phone despite this correspondent calling them repeatedly.

Earlier, Indian Express quoted Jai Bhagwan saying “the probe is already underway. Anyone can make allegations. There is a board which takes collective decisions, just like a state Assembly passing a Bill in the house. The allegations are baseless.”

Due to wrongdoings of the past board, the bank employees are not getting their pay on time. One of the employees talking to this correspondent said “In the bank there are about 236 employees who are getting only half their salary and not to speak of other benefits as per the labour law”, he said on condition of anonymity.

According to an inquiry report, the Lajpat Nagar branch of the bank had the highest NPAs and maximum number of fake loans sanctioned. Significantly, Jai Bhagwan was then the director of the bank and also in-charge of the Lajpat Nagar branch.


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Comments ( 2 )

  1. Bhavnesh gupta 8586910913

    Let the elections take place at the earliest,barring those directors elected in 2011 and panalised by the registrar recently.ask the administrator why the decision is still pending in some staff members cases while the enq.reports have been submitted long ago.

  2. Bhavnesh gupta 8586910913

    Let the election of the bank take place,barring those directors who have been penalised by the registrar recently.ASk the administrator to clear all pending cases relating to staff ,the enq reports have been submitted long before.

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