Fraud by PMC Bank / Is it Ethical

Fraud by PMC Bank / Is it Ethical 

Or Unethical

If we see in the terms of business, before starting any kind of business one must know the actual meaning of two basic words that are (ethical ) and (unethical).

Ethical word simply means avoiding activities or organizations that do harm to people or the environment. On the other hand the word unethical means  going against social or professional expectations of what is  right, it's a word that's often used to describe bad behavior or immoral conduct.

  

Now in my upcoming words I am going to discuss one of the major fraud or you can also say it as an unethical practice by PMC bank .

PMC bank or you can also say Punjab Maharashtra cooperative bank is a Scheduled Commercial bank situated in 6 states of the country. This bank was established on February 13, 1984 as a single branch Bank. In a span of 35 years, the Bank has a wide network of 137 branches across six states

At the time of its establishment PMC was a cooperative bank but in 2000 it got the status of Schedule Commercial Bank by the the Reserve Bank of India. PMC is the youngest bank to achieve the Scheduled Bank status.

So here was a little brief introduction to PMC bank now its time to discuss what actually PMC bank fraud was...

Details about the bank fraud:

The crux of this bank fraud is that the higher management of the PMC bank has given huge loan to the Housing Development and Infrastructure Ltd (HDIL) and its group entities.
If we talk about the total amount of the bank fraud then it was 4,355 cr.

The PMC bank allegedly favoured to the promoters of Housing Development and Infrastructure Ltd HDIL and allowed them to operate password protected masked accounts.

It was found that 21,049 bank accounts were open by bogus names to conceal 44 loan accounts , the bank software was also tampered to conceal these loan accounts.

This bank fraud case was busted by a bunch of women employees of the credit department of the PMC bank. These employees told to the RBI that they were aware of the ghost accounts. When this case came in the light then customers of the PMC bank rushed to the PMC bank to withdraw their hard earned money but they were refused to give their deposited money and withdrawal limit is set by the bank. ( Now here the unethical practice of the bank starts where the bank sets a widrawal limit after the truth has been revealed to the public. ) 

After the investigation was done the enforcement directorate ED sealed the assets of HDIL group and their Cheif Rakesh Wadhawan and his son Sarang Wadhawan was arrested by the Mumbai police .

This was what actually the PMC bank fraud 

was, from this I just wanted to show that what actually the unethical practices are.

This is just one example there are a lot more that we can find in the real world , not only bank frauds there are various companies like companies of FMCG , Technological companies etc who are involved in different kinds of unethical practices just for the sake of earning profit .

 

These days there are a lot of public as well as private companies who have just forgotten the real meaning of word ethical and unethical , they are now doing anything just for the sake of earning profit . 

In today's era I think we the common people have become their target and they can do whatever they want just to take money out of our pocket. So now it time for us to get aware about these unethical practices which practiced regularly by various companies. 

Thank you 

Khushant Lilhare