Industry

‘Arrest of BoM MD an aberration,’ says official

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‘Intention is not to hound bankers’

A top Finance Ministry official has termed the arrest of Bank of Maharashtra (BoM) managing director and chief executive officer R. P. Marathe as an ‘aberration’ which should not be seen as an intention to hound bankers.

“It seems to be a bit of an aberration,” the official said. “It should be set right; there is a proper mechanism in place. In the normal course, the state police do not have any jurisdiction on Central government employees.”

Violation of norms

Last week, the Pune police arrested six officials, including the chief executive of the bank, on allegations of violation of norms while extending credit to a real estate developer.

The Indian Banks’ Association (IBA) had questioned the arrests and said they would submit a memorandum to the Finance Minister as well the Prime Minister’s Office next week so that such actions are avoided in the future. The IBA said it would propose to the authorities the setting up an independent committee which could examine the charges levied against bankers before they could be arrested. The official said the IBA only highlighted its concerns.

“They did not protest. They have told us in a very dignified way about what is the wrong happening.”

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Printable version | Dec 11, 2019 6:07:51 AM | https://www.thehindu.com/business/Industry/arrest-of-bom-md-an-aberration-says-official/article24256028.ece

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