RBI directs Bank of Rajasthan to sack Deputy Managing Director Deepak Saruparia
merisarkar news service
New Delhi, June 12, 2010
RBI asked BoR to sack Deepak Saruparia
Banking regulator and India's central bank - The Reserve Bank of India on Saturday asked controversial lender Bank of Rajasthan, to remove its Deputy Managing Director Deepak Saruparia and banned him from managing any other bank for the next five years. ICICI bank is set to acquire the Bank of Rajasthan.
Bank of Rajasthan informed to BSE, "Reserve Bank of India has directed that Deepak Saruparia shall stand removed from the post of Deputy Managing Director in Bank of Rajasthan with immediate effect."
RBI also directed that Deepak Saruparia "shall not in any way either directly or indirectly be concerned with or take part in the management of any banking company for a period of five years from June 12, 2010."
RBI's directive to remove Saruparia comes few months after it slapped a show cause notice on him.
However, Mr. Saruparia told a news agency that imposing charges only against him was not proper as he did not take decision individually and they were approved by the bank collectively.
He also claimed that that the alleged irregular transactions were executed prior to his taking over as the DMD of the bank.
RBI move follows its order imposing a Rs 25 lakh penalty on the Jaipur-based bank for violation of a host of norms like the acquisition of immovable properties, deletion of records, non-adherence to KYC norms and anti-money laundering guidelines amongst others.
Market watchdog Sebi also came down heavily on the bank by banning around 100 entities, including promoter Tayals from accessing the stock market.
"All the decisions were taken unanimously by the Board ... there were RBI nominees also on the Board that time ... singling me out therefore is not proper," Saruparia said.
RBI sources say that Saruparia is charged with irregularities in property transactions during 2002-2004 including that of an office building at Lower Parel.
RBI is also understood to have found irregularities in handling of certain corporate accounts during Saruparia's tenure. Saruparia, who joined BoR in August 2004 was elevated to the post of Deputy Managing Director in 2007.
A senior BoR official, on condition of anonymity, said "The charges (against Sarupuria) are mainly in relation to the acquisition of immovable properties and certain corporate transactions."
