BJP Leader and Member of Parliament Subramanian Swamy has questioned the merger of Lakshmi Vilas Bank (LVB) with Singapore based bank DBS(Development Bank of Singapore Limited) calling it as the most scandaleous.
The BJP Leader has also demanded a forensic audit of assets of Lakshmi Vilas Bank and a probe against RBI officials including the governor Shashi Kant Das.
In a three page letter written to Prime Minister Narendra Modi, he has pointed out that the m=amalgamation of a bigger bank has t=been given to DBS, which is atleast 20 times smaller than LVB. Also, RBI had sought objections from stakeholders on Nov 20, 2020 which means that the stakeholders gto time of less than 72 hours to respond.
“LVB is about 20 times larger than DBS in all dimensions of banking. LVB branches around India are about 550 in number. On the close of business hours on November 17, 2020, the RBI put out a draft amalgamation scheme by which the entire assets of LVB were to be transferred to DBS Bank. In consideration for the above transfer of assets, DBS was to take over only the deposits of LVB. Further, the draft scheme envisaged that the entire bond and shares of LVB would be written off, incredible as may it sound and a scandal in itself,” said Swamy pointing out that in 72 hours, RBI approved the merger without giving time for share and bondholders to respond
Swamy has questioned the haste with which the scheme has been notified and the scheme has come into effect from November 27 without addressing the objections forwarded by the stakeholders.
Swamy also accused that RBI Governor Shakti Kanta Das from Tamil Nadu IAS cadre of having a corrupt past. “The healthy functioning of RBI must remain one of the high priorities of our Government. And hence the present RBI Governor be sent out on indefinite leave till the investigations are over. The RBI Board and Advisory Committees be re-constituted,” said Swamy.
Subramanian Swamy’s letter to Prime Minister on the illegalities in the merger of Lakshmi Vilas Bank and DBS is published below:
