More steps to prevent frauds are needed which include tightening the internal and external audit systems of banks
More steps to prevent frauds are needed which include tightening the internal and external audit systems of banks
The biggest banking scam in India has come to the forefront in the midst of celebrations of ‘Aazadi Ka Amrit Mahotsav’; in this case, Dewan Housing Finance Corporation Limited (DHFL) has hoodwinked a consortium of banks driven by the Union Bank of India to the tune of ₹35,000 crore through financial misrepresentation. The DHFL case was not an isolated case. In February this year, ABG Shipyard Limited of Surat had already taken a loan of about ₹23,000 crore in a fake manner.
Taking a hit
On February 1, 2019, a consortium of banks had held a meeting to take cognisance of the serious allegations of loan repayment default against the DHFL. Subsequently, a core committee of seven of the largest banks — the State Bank of India (SBI), the Bank of Baroda (BoB), the Bank of India, Canara Bank, the Central Bank of India, Syndicate Bank and the Union Bank of India (UBI) — was formed. KPMG (a ‘global network of professional firms providing audit, tax and advisory services’) was roped in as the evaluator to lead a unique survey review of the DHFL for the period April 1, 2015-March 31, 2019.
The Central Bureau of Investigation (CBI), in its first information report, has shown that the State Bank of India was the most badly hit with a…
