Catching the culprits - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Catching the culprits

Jul 26, 2002

The recent JPC report on the recent scam specifically names a few individuals and companies for the scam. At the outset I wish to clarify that I have not read the entire draft report but have read articles about it as carried by the press.

I would also like to clarify that, until I read the press articles about this JPC report, I had pretty much forgotten which JPC group was out there and which scam they were trying to investigate. I hope you will forgive me for this but there have been so many acts of blatant robbery in the capital markets in the past decade that there are probably more scamsters and scams than there are honest people in the country! And there are probably more JPC reports written by people who themselves need to get familiar with the intricacies of the market and who take so much time to uncover "facts" that history has a way of forgetting what the crime was in the first place. Justice delayed, they say, is justice denied. And Indians have been denied justice for a long time. But, yet, this particular report of this particular JPC for this particular scam has named a person whom I have had the pleasure of interacting with. And, after each of my meetings with this individual, I have left with a sense of hope. "Hope" because, in all my 18 years of meeting with various officials in the Ministry of Finance, SEBI, UTI, I have rarely met a man from these august institutions who was willing to listen, was quick to understand the issues at hand, and - in my personal view - make an honest decision. According to the JPC report Dr. Nayak, Chairman and MD of UTI Bank, "stood to gain personally from the merger" that was proposed between Global Trust Bank and UTI Bank. Given all that has been written about the political backing of Mr. Gelli of Global Trust and the then UTI Chairman P. S. Subramanyam, I find it hard to see - without any explanations from the JPC - as to how Dr. Nayak "stood to gain personally" from this proposed transaction.

Did Dr. Nayak buy a bunch of shares for his personal account to profit from this transaction? Well, please can the JPC detail those? Did Dr. Nayak receive a guarantee that he would be the Chairman and MD of the larger, combined entity? Those who have observed Mr. Gelli knows that his style is not to share the spotlight with anyone and he prefers to be the shining star of any organization. Here is a Quick Test: name me one senior executive of GTB that you heard about while Mr. Gelli was Chairman. Okay, if you cannot name a senior person then tell me if you ever saw an article on GTB in which anyone other than Mr. Gelli was featured? My personal view is that, if the politically-backed bank merger had been successful, Dr. Nayak would have been out of a job. But that is my view and I am not a JPC - a body that gives judgements based on facts and figures and documentation.

The JPC's role is to identify the culprits, collect proof that they have done something wrong, and then name them to the general public. Dr. Nayak's name may have been tarnished due to a gross error. If the JPC has some proof of his wrong-doing, they should release it. If not, an apology to Dr. Nayak - and that what he stands for - is in order.

The views expressed by the author are his own and not of the website. However, the author is co-founder of this website and would like to disclose that this company has a normal, banking relationship with UTI Bank (and with 3 other banks).

Equitymaster requests your view! Post a comment on "Catching the culprits". Click here!


More Views on News

These Stocks Have Rallied Over 300% In the Last 12 Months. Is the Rally Justified? (Views On News)

Nov 12, 2021

As many as 150 stocks from the BSE 500 index deliver multibagger returns in the past one year.

Ultimate Guide to Hedging Your Portfolio (Fast Profits Daily)

Sep 21, 2021

How can you protect your portfolio in a market crash? Find out in this video.

Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)

Mar 23, 2021

Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms