Takru’s call

The open economy seems to have opened a Pandora’s box in the Indian economy. The nationalised banks have become a breeding den of non-performing assets (NPAs) with Mumbai as the epicentre. However, there is a veil of corporate secrecy which nobody can lift. The NPA route has placed a tool in the hands of bank regional managers, general managers and chairmen. Whether the Financial Services Department, located on the Capital’s Parliament Street, is aware of this menace or not, Secretary Rajiv Takru is definitely. It is said that loans ranging from Rs 900 crore to Rs 3,000 crore have been given to individuals of a specific trade in Mumbai on the basis of fake value document hypothecation. As much as Rs 50,000 crore has thus been distributed by the nationalised banks as freebies. Now, naturally, the banks are in a big soup. The situation is very grave: neither the commodity nor the trader is available. Fake firms, fake accounts and the connivance of bank chairmen and officials make it easy to siphon off tax-payers’ money smoothly. Will the tough Takru take any action?