The PMC fraud has startled everyone. Dubious transactions were kept hidden since 2008 and were managed in such a way that neither the statutory auditors nor RBI’s periodical scrutiny got a whiff of the on goings.
While investigations are now underway and even FM Nirmala Sitharaman has extended her support to the customers, it is still a matter of grave concern.
The Rs 4,355-crore fraud case has left hundreds of customers stranded in despair. With their hard-earned money at stake, these customers are seething with anger and angst. They have demanded stringent action against the culprits and the return of their money that they deposited in the bank.
Yet again, the surprising part is the ease with which frauds get conducted because of loopholes in our system. From Vijay Mallya to Nirav Modi to this and many other scams that happen consistently, these loopholes, process twisting and easy corruption, have led such people thrive.
The real sufferer is the common man, who trusted them.
The government needs to wake up to this critical problem. They have to ensure regularisation and tightening of the existing laws. Periodic check of defaulter status and even a sign of wrong doings have to be noticed and brought to book.
The legal processes, fines and penalties, punishment clauses and reprimand methodology have to be changed and strictly implemented. It’s because people know that they can get away with marginal fines and bailable warrants, that they commit such crimes with confidence. This is what needs to be worked upon.