Trust holds Bandhan Bank chief responsible for crisis
Bongo Bhashi Mahasabha Foundation in a legal notice by Kolkata HC advocate highlights several grave issues allegedly perpetrated under Chandra Sekhar Ghosh’s leadership
Chandra Shekhar Ghosh, Chairman, Bandhan bank
In a strongly worded legal notice sent by Advocate Nripendra Krishna Roy of the Kolkata High Court, BBMF accused Chandra Sekhar Ghosh, founder and Chairman of Bandhan Financial Services Ltd, of numerous violations concerning the Bandhan Employees Welfare Trust (BEWT)
Banking Blues
♦ The notice serves as a final invitation for amicable settlement
♦ Urging Ghosh to respond within 7 days
♦ It’s observed that employees subjected to forced savings
♦ Which were directed into the BEWT Fund
♦ Dismissed staff did not receive their dues
♦ AGMs or EGMs not conducted
Misappropriation in any circumstances must be punishable by law - Nripendra Krishna Roy, Advocate, Kolkata High Court, tells Bizz Buzz
Mumbai: Bandhan Financial Services Limited, one of India’s premier microfinance institutions, is currently embroiled in serious allegations of financial misappropriation and breach of trust. These accusations have been brought forward by the Bongo Bhashi Mahasabha Foundation (BBMF), a registered trust dedicated to addressing the issues faced by Bengali communities globally. In a strongly worded legal notice sent by Advocate Nripendra Krishna Roy of the Kolkata High Court, BBMF has accused, Chandra Sekhar Ghosh, Founder and Chairman of Bandhan Financial Services Ltd, with CC to Ronendra Chowdhury, Chairman of the Bandhan Employees Welfare Trust, and AK Singh, Additional Director on the Board (appointed by the RBI) of Bandhan Bank, of numerous violations concerning the Bandhan Employees Welfare Trust (BEWT).
The notice underscores several grave issues allegedly perpetrated under Ghosh’s leadership. The notice claims that employees were subjected to forced savings, which were directed into the BEWT Fund. Dismissed employees reportedly did not receive their dues from this fund, an act deemed illegal and arbitrary, amounting to dishonest misappropriation of public money. According to the notice, Bandhan has failed to conduct Annual General Meetings (AGMs) or Extraordinary General Meetings, as mandated by the trust deed. This has resulted in a significant lack of transparency within the organization. Trustees have allegedly not been provided with a copy of the trust deed, further compounding the governance and transparency issues. The trust deed stipulates the election of representatives for every 200 members.
However, no such election has been conducted.
Instead, many relatives of Ghosh have been nominated to the Board of Trustees. Beneficiaries of the Trust have reportedly not been shown financial statements, violating BEWT regulations. Additionally, the trust fund has allegedly been misused for purchasing questionable shares and engaging in dubious transactions, potentially involving money laundering or misappropriation of funds.
Advocate Roy has posed several critical questions to Ghosh, demanding explanations for the alleged misdeeds. The notice warns of potential legal actions, including filing an FIR for criminal breach of trust, misappropriation of public money, and fraudulent activities. It also suggests the possibility of referring the matter to investigative agencies such as the Central Bureau of Investigation (CBI), the Serious Fraud Investigation Office (SFIO), and the Enforcement Directorate (ED).
An e-mail sent by this correspondent to the BEWT management remained unsolicited.
Talking to Bizz Buzz, Nripendra Krishna Roy, Founder and advocate of Kolkata High Court, said, “Misappropriation in any circumstances must be punishable by law.”
The notice serves as a final invitation for an amicable settlement, urging Ghosh to respond within seven days. Failure to do so will lead to the matter being pursued legally, without further reference to him.
Shukla Bal, former member of BEWT, and vice-president, of BBMF West Bengal, says: “The BEWT authorities are benefiting by keeping the members in the dark. They have not fulfilled the promises given to the members to date. We want to get a speedy solution to this problem through the hands of the Bongo Bhashi Mahasabha Foundation.”
This development casts a shadow over Bandhan Financial Services, a company that has been a beacon of success in the Indian banking sector. The allegations, if proven true, could have severe repercussions for Ghosh and his associates and the company’s reputation and trust among its stakeholders.
