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Kotak Mahindra Bank Denies Any Action From PMO; Says It's Routine Process

Kotak clarified that it’s a routine process for the PMO to direct a grievance on banking and financial matters to the Finance Ministry with a remark - “to look into the matter and take appropriate action”

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According to a recent news that the Prime Minister office has directed The Finance Ministry of India to look into a complaint of Dr Santosh Kumar Bagla a business family from Mumbai against the Kotak Mahindra Bank MD and CEO Uday Kotak and other senior officials for alleged conspiracy, fraud and forgery.

On the complaints filed by them earlier this month, the PMO has asked Secretary, Department of Financial Services (Banking Division) to take appropriate action into the allegations of criminal conspiracy and illegal activities. Bagla family has also written to the President’s Office, and the Union Home Ministry demanding a CBI probe against the Kotak Mahindra Bank MD and CEO Uday Kotak and other senior officials. They have also approached Union Home Ministry for penal action against six police personnel then posted in Barakhamba Road police station for their alleged connivance with the Kotak Mahindra Bank officials by acting in an unfair and biased manner for the arrest of Bhupendra Bagla in complete contravention of legal procedures.

In reply to the same, Kotak clarified that it’s a routine process for the PMO to direct a grievance on banking and financial matters to the Finance Ministry with a remark - “to look into the matter and take appropriate action”.

Couple of web-based media have completely distorted the PMOs communication to the Finance Ministry. Certain persons have further distorted a simple communication from the PMO by making damaging statements, which are completely untrue. This issue is about a ten year old loan recovery case where the borrower - Cogent Ventures India Limited and members of Bagla family as guarantors had defaulted on their loan repayment and to recover dues, our bank had initiated recovery proceedings.  Subsequently, the borrower entered into an out-of-court settlement and repaid the bank’s dues. Our bank always acts in accordance with the prevailing law and regulations. We shall be dealing with the matter appropriately", Rohit Rao, Chief Communication Officer, Kotak Mahindra Group.


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