Skulduggery in the IDBI
SINCEYogesh Agarwal became chairman of the Pension Fund Regulatory Development Authority in July, he has been busy trying to remote control the IDBI. He was earlier IDBI Chairman and spawned quite a few controversies over sanction of loans.
It is said that he had a deal with two industrial houses, one with interest in civil aviation and the liquor business and the other in wind power. One allegedly received substantial funding from IDBI in violation of prudent financing norms while the other secured debt restructuring to the substantial detriment of IDBI’s interests. Under the deal, Agarwal would be installed as Deputy Governor of the RBI and he would ensure BK Batra’s promotion as Deputy Managing Director of IDBI. These plans were doused by the then Finance Secretary, Arun Ramanathan, whom Agarwal had rubbed the wrong way in the first meeting of the IDBI board.
However, Agarwal’s proximity to an important official in Finance Minister Pranab Mukherjee’s office secured him the PFRDA post. He has been frequently visiting the official to get Batra appointed DMD of IDBI by flouting the eligibility norms which stipulate that only an ED with at least two years’ tenure will be considered for promotion. Batra had only one-and-a-half years to his credit at the time of the interview. Dozens of complaints landed in the CVC’s office but were ignored because, well, the CVC’s son was taken care of in the IDBI by Agarwal and Batra......readmore
SINCEYogesh Agarwal became chairman of the Pension Fund Regulatory Development Authority in July, he has been busy trying to remote control the IDBI. He was earlier IDBI Chairman and spawned quite a few controversies over sanction of loans.It is said that he had a deal with two industrial houses, one with interest in civil aviation and the liquor business and the other in wind power. One allegedly received substantial funding from IDBI in violation of prudent financing norms while the other secured debt restructuring to the substantial detriment of IDBI’s interests. Under the deal, Agarwal would be installed as Deputy Governor of the RBI and he would ensure BK Batra’s promotion as Deputy Managing Director of IDBI. These plans were doused by the then Finance Secretary, Arun Ramanathan, whom Agarwal had rubbed the wrong way in the first meeting of the IDBI board.
However, Agarwal’s proximity to an important official in Finance Minister Pranab Mukherjee’s office secured him the PFRDA post. He has been frequently visiting the official to get Batra appointed DMD of IDBI by flouting the eligibility norms which stipulate that only an ED with at least two years’ tenure will be considered for promotion. Batra had only one-and-a-half years to his credit at the time of the interview. Dozens of complaints landed in the CVC’s office but were ignored because, well, the CVC’s son was taken care of in the IDBI by Agarwal and Batra......readmore
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