Bidders say NKGBS Cooperative Bank, Jogeshwari did not allow them to participate in the auction; allege underhand business at play
Bidders say NKGBS Cooperative Bank, Jogeshwari did not allow them to participate in the auction; allege underhand business at play
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Going by allegations levelled against the NKGBS Cooperative Bank, Jogeshwari (East), there was nothing public about the public notice issued by it in an English daily, inviting tenders for the auction of flat number 52 in Maru Bhavan, Vile Parle (West).
The NKGBS Cooperative Bank, Jogeshwari (East), had issued a public notice in an English daily inviting tenders for the auction of flat number 52 in Maru Bhavan, Vile Parle (West)
Rajesh Vitlani, who was one of the several people who had gathered outside the bank on Tuesday morning to bid for the mortgaged property, alleged that some underhand business was underway at the auction.
The property has a current market rate of over Rs 1.30 crore and was put up for auction since its owners could not repay the loan they had taken from the bank.
Complainants speak
Vitlani (45), a businessman from the northern suburbs of Mumbai, said that his suspicion was aroused when a bank official, who identified himself as Santosh, told him on the phone that that the auction had been called off, but refused to issue any official notification for the same.
"I gathered from my sources that something fishy was going on, and decided to reach the bank anyway, reaching an hour before the stipulated time, along with a bank draft of Rs 10 lakh, which was a mandatory requirement, as mentioned in the public notice.
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(MiD DAY has obtained a copy of the documents). I was denied entry, but not before I realised that an auction was in progress inside the bank, with around three bidders," said Vitlani.
Gunjan Shah, another prospective bidder, also alleged that when he tried to submit his tender and other documents, they were flung on his face, after which he was asked to leave. "The bank officials even refused to give me any kind of acknowledgement for my Rs 10 lakh draft.
It is obvious that the bank officials have vested interests in the auction, and are working hand-in-glove with each other to dispose the property to one of their own," he claimed.
Shah added that he was unofficially told that his bid would be accepted only if he made an additional payment of Rs 35 lakh, over and above the amount of the opening bid, priced at a staggering Rs 95 lakh.
Manish Thakker, another potential bidder, went to the extent of filing an non cognisable complaint (MiD DAY has a copy of the document) at the Jogeshwari Police station, claiming that he was roughed up by the bank employees when he tried to reason with them. "Why call it a public auction, when the public is not allowed to bid?" he questioned.
Expert speak
Mukesh Nagrani, who specialises in fraud and cheating cases, opined that if proper procedure is not adopted at a public auction, or if the public servant or officer-in-charge has dealt with malafide intentions, a case can be registered against him, and action taken after investigations, for criminal misconduct, under sections 13(1)(d) of the Prevention of Corruption Act, 1988.
He went on to say, "Mere failure to follow the prescribed rules and procedures does not amount to an offence, unless dishonesty is established.
If a bank does not follow proper norms in an auction, it can be declared as null and void. The complainant can file an RTI application to obtain the norms fixed for that particular auction. Action can be taken against officers found guilty, u00a0also for misusing the provisions of the Securitisation Act."
The Other Side
When contacted, the NKGSB branch manager Ramdas Nadkarni said that he was in no way connected to the auction of the flat, forwarding the matter to Nitin Zende, the bank's recovery manager.
Zende said, "The bank had not violated any regulations. The auction process is complete. When someone tries to enter the bank forcefully, it is my duty to stop them."
When asked why the bank had refused to admit seven willing auctioneers, standing outside his branch in the sweltering heat for five to six hours, clutching bank drafts worth lakhs in their hands, he denied the allegations and refused to reveal the name of the person who won the bid.
Bank Notice
The public notice in the newspaper said that the NKGBS Cooperative Bank was auctioning the flat, which had been mortgaged by Mr and Mrs Umesh Yadhav. They had eventually failed to repay the loan.
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