Bank managers cheat NRI, divert Rs 48L

MUMBAI: Private wealth managers and asset consultants maybe the latest luxury services being offered by Indian banks to their most valued customers, but little is spoken about the risk involved in sharing your financial history with these 'consultants'. US-based NRI, Dhirajlal Babaria, learnt this the hard way after his 'trusted' bank managers siphoned off Rs 48 lakh that he had invested in six mutual funds on their insistence.More than two years after he filed a criminal complaint in the matter, he said lackadaisical approach to the investigation has ensured that justice still eludes him.
Babaria, a resident of Texas for the past 25 years, held an NRI account with the IndusInd Bank at the Lamington Road Branch since 1995. In 2008, on one of his regular India visits, his wealth manager suggested to him that he should invest some money in mutual funds to get a higher rate of interest on his savings. "He made a power of attorney in the name of the branch manager and the NRI section manager so that they could look after his accounts. However, we were shocked to find that soon after there was no money in his account," said his cousin Vijay Patel, who is now fighting his case in Mumbai.
Patel claims that somewhere in 2009, some members of IndusInd Bank created a false account under Babaria's name in Axis Bank and gradually diverted all the money invested in the mutual fund into that account. He adds that in order to create this account, the accused forged vital documents like Babaria's PAN card, his residence proof, photo identification and signature. "Documents we have accessed show that these men from IndusInd Bank made a false identity card and even showed fake residence proof. Once they opened this bogus account, they continued to withdraw money till nothing was left," said Patel.
This came to light in January 2010 and Babaria immediately lodged a police complaint with the DB Marg police station. In the FIR he has named several people including senior and midlevel officers of the IndusInd Bank and Axis Bank for their complicity in the fraud. "Despite repeated attempts and several meetings with the police, little action has been taken. They arrested one person but later released him on bail. They said they haven't been able to trace the other two main accused. We strongly suspect money has changed hands leading to an inept and sluggish probe," said Patel.
Investigating officer of the case, Inspector S Desai, refuted the allegations and said good progress had been made in the matter. "We arrested one person but the court granted him bail. The investigations are on and the case is now in court so it is not appropriate for me to comment on this," he said.
Despite repeated calls to IndusInd Bank and Axis Bank, TOI was not able to talk to any senior official in the management.