Recently, The Reserve Bank of India (RBI) has slapped a penalty of Rs. 2 crore on Kotak Mahindra Bank for the non-state lender’s failure to adhere to the regulator’s diktat on promoter shareholding.The central bank has been engaged in a dispute with Kotak Mahindra since 2014 over its failure to meet the milestone for stake reduction by Uday Kotak, the billionaire promoter of the bank.

1. PRESS NOTE
IS PRIVATE BANKS ARE NOT SAFE IN INDIA LIKE KOTAK MAHINDRA
BANK, ASIX BANK AND OTHERS?
Recently, The Reserve Bank of India (RBI) has slapped a penalty of Rs. 2
crore on Kotak Mahindra Bank for the non-state lender’s failure to adhere
to the regulator’s diktat on promoter shareholding.The central bank has
been engaged in a dispute with Kotak Mahindra since 2014 over its failure
to meet the milestone for stake reduction by Uday Kotak, the billionaire
promoter of the bank.
Also, acting against a fraud perpetrated by an Axis Bank employee in
collusion with an employee of a private educational institute, the
Enforcement Directorate (ED) has provisionally attached 17 immovable
properties, investments in mutual funds, balances in bank accounts
totaling to ₹4.58 crore.
The Mumbai wing of the Enforcement Directorate (ED) seek details from
Axis Bankas part of the probe into a Rs 2,000-crore hawala scam centred
on an Ahmednagar-based urban credit cooperative society. The society
had its account with the private bank. The central agency will seek to
know if the bank verified KYC details of the credit society, if there were
any transaction of suspicious nature, and whether any alerts were raised
and the accounts into which monies were credited.
Further, an FIR No. 0120/2019 dated 19/10/2019 has been registered at
PS Barakhamba Road, New Delhi against Kotak Mahindra Bank Ltd and
six other accused including Mr. Uday S. Kotak, MD & CEO, for their role
in a scam of forgery of documents vide order dated 14.10.2019 of MM
Patiala House Courts, New Delhi who has taken view that as matter
requires investigation by police, several documents are to be collected and
verified and number of persons are to be examined.
After registration of the said FIR for committing fraud and forgery by Kotak
Mahindra Bank and others including Uday S. Kotak and Anand Mahindra,
Bagla family has also filed a complaint with the Court of Chief
Metropolitan Magistrate, New Delhi, under Section 200 r/w 190 Cr. P.C.
for taking cognizance of offences Committed U/s 211 (IInd Part), 499/500,
501, 502 r/w 120B/34 IPC, against Kotak Mahindra Bank Ltd & others.
On a complaint to the office of Prime Minister of India, tThe PMO had
directed the Secretary, Department of Financial Services (Banking
Division) for action as appropriate in the matter of complaint against
Kotak Mahindra Bank Limited, its MD & CEO Mr. Uday S. Kotak and other
senior officials for alleging conspiracy, fraud and forgery of some
documents. [Ref: Replies dated 03/09/2019 and 04/09/2019 from PMO

2. with Registration No. PMOPG/D/2019/0318007 & PMOPG/D/2019/
0320812]
It has been alleged in the complaint that the officials of the Bank in
collusion and in connivance with each other, hatched a conspiracy and
forged and fabricated documents including one affidavit and a power of
attorney which were alleged to have been executed by one of the Bagla’s
family member i.e. Mr. Bhupendra Bagla for mortgaging leased property
against a unsecured loan and on the basis of which the Bank initiated
recovery proceeding before the Ld. DRT.
It has been alleged in the complaint that the above named accused in
connivance with the each other, falsely implicated one Bhupendra Bagla
son of Dr. Santosh Kumar Bagla (a renowned business family based at
Mumbai & Delhi) in a criminal case by using forged and fabricated
documents created and used by the above named accused.
It has been further alleged in the complaint that the averments made by
the accused in this regard has resulted in multiple litigations and
publication, which are public documents and due to such malicious
publication and false allegations, the reputation of complainant and Dr.
Bagla’s family, got tarnished in the eyes of their friends, employees,
business relations etc.It has been also alleged that the credibility built by
the Complainant over a span of time, has been shattered due to leveling
the false, frivolous, fictitious and baseless allegations against the
complainant.The Court has been prayed to take cognizance of the matter
and also prayed to punish the named accused as per law.
The matter was listed before the Court of Metropolitan Magistrate, Patiala
House Courts, New Delhi wherein the Court has directed the complainant
to file certified copies of the judicial record as relied upon and FIR lodged
on the complaint of the accused, before the next date of hearing.