The Hindu Business Line : 2nd list of ‘tainted’ service providers released

Chennai/ Thiruvananthapuram, March 27 Banks are finding that they have to let go of a few more of their chosen providers of financial services. These service providers to whom banks have outsourced some jobs have been slapped with charges of wrongful ‘acts’ of commission and their services have since been terminated.

The Indian Banks’ Association (IBA) has invited the attention of member banks to a second list of such service providers whose services have been terminated for various reasons by individual banks and reported to it in compliance with the specific RBI Circular No RBI/2006/167 of November 3, 2006.

This circular required that banks update the IBA with information if they have terminated the services of a service provider, giving reasons thereof. The IBA would, in turn, maintain a ‘caution list’ of such service providers, which would be made available to member banks.

While the first list of 22 blacklisted providers circulated among IBA members earlier this year saw banks concerned too being named, the second list of 21 stops short of doing that, perhaps fearing bad publicity. All blacklisted service providers in the first list were employed by private sector banks.

The reasons for termination this time round range from misappropriation of funds collected from customers, payments not deposited on time, instances of over-valuation, misappropriation of instalment amounts, fraudulent activities, accepting money for preparing a fraud document, production of forged documents and abetment of forgery to misuse of bank material.

But what takes the cake is the instance of an overzealous service provider going quite a distance to sign the documents on behalf of its customer! The first list had cited submission of forged documents, leakage of customer data and failure to meet statutory liabilities.

The names in the second batch of blacklisted service providers whose line of activities ranged from recovery, collections, valuations to sales, are: Ajit Pagare, Baramati (Pune); TICCS Associates, Janakpuri, New Delhi; Violet Apple Services, Vikas Puri, New Delhi; Taneja Associated, Nehru Vihar, Delhi; RST Management Services, Safdarjung Enclave, New Delhi; Jayesh Katira, Rajkot, Gujarat; Anil Sharma, Jaipur, Rajashtan; Pravinkumar Babubhai Patel, Ahmedabad; Amrut Gajjar and Associates, Ahmedabad; N. D. Desai, Ahmedabad; Sandip Babulal Shah, Ganshinagar, Gujarat; M. P. Bhat, Vallabh Vidya Nagar, Gujarat; Dhirajlal, Mohanlal Kundalia, Rajkot; Kamalesh Muljibhai Thakkar, Chandhidham, Kutch; Nihibabu Balvantrai Dave, Anand, Gujarat; Shree Balaji Associates, Chittorgarh, Rajasthan; Common Wealth Enterprises, Pune; Ishika Associates, Jaipur; and Krish Financial Services, Ahmedabad; Mutamil Selvan, Tiruchi, Tamil Nadu; and Bineesh Kumar,Palakkad, Kerala.

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