Suspension of IAS officer for licence renewal of Zakir Naik's NGO draws flak

[email protected] (CD Network)
September 5, 2016

Mumbai, Sep 5: Days after Union Ministry of Home Affairs suspend a Joint Secretary and his subordinates for the online renewal of Foreign Contributions Regulation Act (FCRA) licence of Islamic preacher Dr Zakir Naik's NGO, the colleagues of the victims petitioned Union Home Secretary Rajiv Mehrishi to convey that great injustice had been done to the honest officers.zakir-naik

The Joint Secretary, G.K. Dwivedi, a 1993 batch IAS officer from Andhra Pradesh cadre was suspended along with two Under Secretaries and a section officer on September 2 for alleged dereliction of duty.

One of the officers Kumar Alok who met the Home Secretary said, “We rate him as an officer of highest level of integrity, he has implemented so many projects including the merger of PIO-OIC card that was announced by Prime Minister Narendra Modi at Madison Square in U.S in 2014.”

Another official said that the online system, through which Dr. Naik's NGO — the Islamic Research Foundation (IRF) licence was renewed does not have any provisions for “red-flagged” NGOs.

“There is no manual interface. While the red flagging is manual, the renewal of licence is electronic. Great injustice has been done to him but we believe in the system that it will be corrected,” said a senior home ministry official.

It is learnt that Mr. Dwivedi had written on several occasions to the National Informatics Centre, the government's web services organisation to upgrade the software to reflect the NGOs, which had adverse reports against them or had been sent inspection notices.

“He is a victim of his own reforms. This online system to weed out corruption from FCRA wing was spearheaded by him. Had everything been renewal, this goof up would have never happened,” said another official.

Dr. Naik's IRF was sent an inspection notice on August 8 and the automatic renewal of licence was done on August 19. Another official said that one of the suspended Under Secretary — Deepak Kumar had also sought transfer from the FCRA wing on several occasions owing to the risks involved with the division.

The Home Ministry had switched to an online renewal system for FCRA registered NGOs earlier this year and the idea was to reduce the human interface after several complained of bribes sought by officials to renew their licences.

Comments

muthhu
 - 
Monday, 5 Sep 2016

Why Doctor Zakir Naik's NGO is been treated despite having clear accounts ....only motto is to make Bakths Happy for sometime

PK
 - 
Monday, 5 Sep 2016

Day by Day cheddis will face more troubles...

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News Network
May 19,2020

Mumbai, May 19: Even as banks in United Arab Emirates are trying to trace NMC founder BR Shetty, a prominent bank in India is seeking to recover loans worth Rs19.13 billion from him and his companies. 

A local court has also barred him and his wife from selling or transferring some properties while it hears the case.

In the court filing, the Bank of Baroda said Shetty had an obligation to handover the title deeds of the 16 properties and mortgage the assets with the bank.

The 16 properties in several Indian cities including Bengaluru were among guarantees put up by Shetty and his wife against the Rs19.13 billion ($253 million) loans, according to a May 16 court order seen by Reuters. The court in Bengalaru set the next hearing in the case for June 8.

NMC, the largest private healthcare provider in the UAE, was placed under administration in April after months of turmoil. It disclosed in March it had debts of $6.6 billion, well above earlier estimates of $2.1 billion.

Finablr, in which Shetty has a controlling stake, said in April it may have nearly $1 billion more in debt than previously reported.

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News Network
May 29,2020

New Delhi, May 29: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.2 crore on Karnataka Bank Limited for non-compliance of asset classification, divergence and provisioning norms.

"The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949. 

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the central bank said in a statement on Thursday.

According to the central bank, the statutory inspection of the bank with reference to its financial position as on March 31, 2017, and as on March 31, 2018, and the Risk Assessment Reports (RAR) pertaining thereto revealed, inter-alia, non-compliance with the directions issued by RBI.

Earlier, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.

After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the charges of non-compliance with RBI directions warranted imposition of monetary penalty, according to a release.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

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News Network
June 6,2020

Jun 6: Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL.

A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to Dewan Housing Finance Corporation Ltd (DHFL), Religare Finvest, Fedders Electric and Engineering Ltd and Leel Electricals Ltd, Karnataka Bank said in a regulatory filing on Friday.

The maximum is owed by DHFL at Rs 180.13 crore, followed by Religare Finvest Rs 43.44 crore, Fedders Electric Rs 41.30 crore and Leel Electricals Rs 20.65 crore.

"DHFL (defaulted entity) dealing with us since 2014 had availed various credit facilities under consortium arrangement wherein, we were one of the member banks. In view of Early Warning Signals (EWS) in the conduct of the account and other developments, the account was red flagged on November 11, 2019.

"The borrowing account was classified as Non-Performing Asset on October 30, 2019 and now, for misappropriation & criminal breach of trust & diversion of funds in the credit facilities extended earlier to the company, a fraud amounting Rs 180.13 crore has been reported to RBI," Karnataka Bank said.

Likewise, Religare Finvest Ltd (RFL) was dealing with the bank since 2014, availing various credit facilities.

Following classification of this account as non-performing in October 2019 by a consortium member, Karnataka Bank reported to RBI a fraud amounting to Rs 43.44 crore in the credit facilities extended earlier, on account of diversion of funds.

Leel Electricals was classified as NPA account in March 2019 and it reported to RBI a fraud amounting to Rs 20.65 crore in the credit facilities to the company on account of diversion of funds.

"In all the referred three non-performing accounts, necessary provisions have been made in full to be spread across four quarters," it said.

Fedders Electric and Engineering Limited was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion.

The account has already been fully provided for, it added.

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