Bank of baroda

Miscellaneous
1.
Dhanjibhai N. Patel had opened a NRE fixed deposit with the Pardi Branch of the Bank on September 4, 2003. By
his letter dated March 6, 2004, forwarded by Dena Bank, Samroli Branch, Dhanjibhai N. Patel requested the Bank
to transfer the abovementioned fixed deposit of Rs. 67,000,000 to Dena Bank, Samroli Branch. By letter dated
March 16, 2004 the Bank expressed its inability to transfer the deposit, as the account was frozen as per the
directions of the Senior Police Sub-Inspector, Pardi Police Station vide letter dated November 28, 2003. Dhanjibhai
N. Patel has made a complaint to the Banking Ombudsman, RBI by letter dated February 16, 2005, which complaint
has been registered as Complaint Case No. 542 of 2004-05. The Banking Ombudsman has directed the Bank to
produce the case number and information about the stage of the criminal case with respect to which the direction

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to freeze the account was given. By letters dated July 29, 2005 and August 26, 2005 the Bank has sought the
same information from the concerned Gujarat Police authorities.
2.
Neena Padma Singh, an NRI, availed a loan of Rs. 11,646,000 against her Foreign Currency Non-Resident
(FCNR) account from the Aliganj Branch of the Bank in Lucknow. The Bank received a memorandum bearing No.
T-4/1-C/2001(SCN-II) dated May 30, 2002 from the Directorate of Enforcement, Ministry of Finance, New Delhi
asking the Bank and the concerned branch manager to show cause as to why adjudication proceeding as
contemplated in section 51 of the Foreign Exchange Regulation Act, 1973 (FERA) read with Sections 49 of Foreign
Exchange Management Act, 1999 (FEMA) should not be held against them on the ground that the loan was
granted without complying with and in gross contravention of FERA. The said notice stated that the loan was given
to a person resident outside India without obtaining formal application and without ascertaining the purpose of the
loan. It was also alleged that the said loan was relent to M/s. Prime Petro Products Ltd. (PPPL) by way of transfer
to the account of PPPL with the Aliganj Branch of the Bank. The Bank received a letter dated January 20, 2003
from the Directorate of Enforcement informing the Bank that since it has failed to reply to the memorandum
mentioned above adjudication proceedings are being initiated against the Bank. The Bank in reply to the above
letter has submitted before the Special Director, Enforcement Directorate that the Bank had duly replied to
memorandum No. T-4/1-C/2001(SCN-II) and that the loan was granted after receiving formal application and
ascertaining the purpose of the loan. The Bank also submitted that the borrower had expressly undertaken not to
relent the amount and that transfer of the amount to PPPL’s account is not relenting of the said amount. The matter
is pending.