Arunachal Scam Triggers Panic Withdrawals at Apex Bank’s Roing Branch
Why in News?
- The Arunachal Pradesh State Cooperative Apex Bank’s Roing branch has witnessed a surge in panic withdrawals following revelations of a significant financial scam involving the misappropriation of ₹20.3 crore. The funds were allegedly funneled to North East Plantation and Commercial Private Limited, a company associated with Rajesh Bajaj, using the “Demand Bill Purchase” method, which contravenes Reserve Bank of India (RBI) guidelines.
Important Key Points:
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Misuse of RBI Guidelines:
The “Demand Bill Purchase” method, intended for specific financial transactions, was misapplied to transfer substantial funds to a private entity, raising concerns about regulatory compliance. -
Political Implications:
Rajesh Bajaj, the prime accused, has implicated prominent political figures, including former BJP minister Sanjay Kishan and current BJP MLA Biswajit Phukan, alleging their involvement in facilitating the irregular loan. -
Public Reaction:
The scandal has eroded public trust, leading to mass withdrawals from the Roing branch as customers fear for the safety of their deposits. -
Calls for Accountability:
The Assam Pradesh Congress Committee has demanded the immediate suspension of the bank’s Managing Director, Dambaru Saikia, pending a thorough and impartial investigation into the matter.
