Bandhan Bank staff voice concerns over fraud at trust

Trustees met the Chairman on Feb 3 and they presented a set of demands, including sale of NICCO Park shares, listing of Bandhan FinServices, provision of all amended Trust Deed copies, minutes of the last 15 AGMs, and an explanation on purchase of Bandhan Bank shares that negatively impacted financial interests of BEWT

Trustees’ Concerns:

•  Non-issuance of Trust deeds
•  Breach of Trust Deed stipulations
•  No members invited for 15 AGMs
•  No transparency in funds and assets

Mumbai: Trustees of Bandhan Employees Welfare Trust (BEWT) have alleged misappropriation of funds by the bank supremo. It was way back in 2018 when the bank supremo announced the trust’s value at Rs6,710 crore. However, the benefits of the revenue are yet to be received by its 3,000 odd members till date. In a significant development on June 22, trustees of the Bandhan Employees Welfare Trust (BEWT) staged a protest in Kolkata. Talking to Bizz Buzz, Srimanta Kumar Das, a trustee of BEWT, says: “The agitation was sparked by a series of grievances and allegations of mismanagement within the trust.”

Das, in a letter addressed to the Chairman of the Trust, enumerated several irregularities that have been plaguing the Trust since its inception in 2008. The first and foremost concern raised by Das was the non-issuance of the Trust deed to the beneficiaries.

Dr Shubhro Chakrabartty, Founder of Bongo Bhashi Mahasabha Foundation, says: “It is deeply shameful and distressing that Chandrashekar Ghosh is involved in misappropriated funds from the Bandhan Employee Welfare Trust. Employees, it is imperative to act now! As a democratic nation, India can’t tolerate such misconduct under any circumstances. Those responsible must be held accountable.”

Furthermore, there have been violations of Covenant No 6, which mandates that general body meetings should include all eligible members. He asserted that none of the 2,500 members present at the January 27 meeting were invited to the previous 15 meetings, indicating a significant breach of trust deed stipulations. Following the extraordinary general meeting on January 27, Das, along with other members, met with the Chairman on February 3.

During this meeting, they presented a set of demands, including the sale of NICCO Park shares within February, listing of Bandhan Financial Services Ltd shares for an IPO, provision of all amended Trust Deed copies, minutes of the last 15 AGMs, and an explanation for the purchase of Bandhan Bank shares that negatively impacted the financial interests of the trustees.

They also demanded a meeting to ensure continuity and reconciliation of financial discrepancies between the previous and current trust leadership and sought justification for the substantial salary paid to an adviser working with Bandhan Financial Inclusion Trust but drawing a salary from BEWT funds. The agitation was a manifestation of the growing frustration and anger among the trustees, regarding the mismanagement and lack of transparency within the Bandhan Employees Welfare Trust.

Trustees also called for a comprehensive audit of the trust’s financial transactions, transparency in the sale and investment of shares, and adherence to the Trust Deed’s covenants regarding elections and meetings. The protestors emphasized the need for accountability and transparency in managing the trust’s funds and assets, ensuring that the beneficiaries’ interests are safeguarded.

They also called for the intervention of regulatory authorities to investigate the alleged financial discrepancies and mismanagement within the trust. As the protest continued throughout the day, the trustees expressed their determination to persist with their agitation until their demands are met and the irregularities within the BEWT are addressed.

“The kind of fraud being committed against all the members of the Bandhan Employee Welfare Trust is highly condemnable. Chandrashekhar, who was made the head of Bandhan Bank by these very people, is now betraying them. As a Bengali, it is shameful to deceive fellow Bengalis in this manner. I urge the State and central governments to take immediate action,” said Dr Parimal Kanti Mondal, President, Bongo Bhashi Mahasabha Foundation.