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4

 October, 2016: Imagine you are having a gynaec examination. With his rubber-gloved fingers inside you, the gynaec starts a casual chat about why you should buy his home-grown brand of condoms and intimate products. Creepy? Yeah, well, but that's how HDFC Bank and other private-sector banks work. Actually, HDFC Bank is like if your gynaec collects real-time information about when and with whom you have sex, what kind of sex you are habituated to, exactly when you menstruate, what kind of lingerie and sanitary pads you are currently wearing, etc. and then this gynaec goes and hires a bunch of MBAs and college freshers, calls them "Relationship Managers", lets them hang around his clinic pretending to be gynaecologists themselves till you start feeling comfortable enough to tell them about your intimate problems.

Then your gynaec goes and gives these relationship managers access to your information on their computer screens, with monthly targets for selling you condoms, sanitary pads and other intimate products. They call you and make you feel important by calling you a preferred customer, and giving you a platinum card. So, if your periods are four weeks late, you get a call that goes like: "Good morning, ma'am, I am Nikhil, your personal banker. May I interest you in visiting our abortion clinic? Oh, you don't want to abort? My apologies, madam. May I take this opportunity to gift you an early booking in a maternity home with whom we have a tie-up? We also have a tie-up with Amazon for incredible discounts on maternity gowns and chocolate-flavoured condoms this Diwali. When can I come and meet you to book your orders?"

Bankers are routinely privy to salary details, annual income, etc. that it is their business to know. However, the salesmen and women who hang around your bank have no business to know your financial details. HDFC Bank branches have a bunch of glib young men and women who are very approachable and go out of their way to fill up account-opening forms, etc. for you. Just because they sit inside the bank, you think they are "bankers" and you never hesitate to ask them to access your account on their computers. So these sales people get to know private things such as a huge cash-flow into your accounts when your life insurance policy matures, or you take VRS, or sell your house, or book profits in the share market.

If you are flush with funds, your "personal banker" says, "Sir, can I interest you in our tax planning products to reduce your income-tax and capital-gains tax liability?" Alternatively, if you are struggling to pay credit-card bills, frequently overdrawing your current-account, breaking fixed deposits prematurely, etc., your relationship manager nudges you to take a personal loan or gold loan which he knows you are unlikely to repay in time. Loan disbursal lets him meet his monthly targets and earn commissions, and when you default on repayments, heavy penalties and foreclosure of your gold loan helps the bank reap handsome profits. Predatory lenders used to be called loan sharks and pawn-brokers! How the times have changed!

HDFC Bank is like if your gynaec collects real-time information about when and with whom you have sex, what kind of sex you are habituated to, exactly when you menstruate, what kind of lingerie and sanitary pads you are currently wearing, etc. and then this gynaec goes and hires a bunch of MBAs and college freshers, calls them "Relationship Managers", lets them hang around his clinic pretending to be gynaecologists themselves till you start feeling comfortable enough to tell them about your intimate problems.
Customers are set up for systematic long-term exploitation by HDFC's bankers and non-bankers acting in concert.

Here's a real-life anecdote: An elderly couple walked into an SBI Bank branch to fill up their 15H form, so that TDS would not be deducted on their interest income. A friendly-looking lady sat them down at her desk, filled up their forms for them, and persuaded them to invest Rs 3 lakhs in SBI Mutual within 15 minutes. The only reason that the elderly folks trusted this woman is that they thought she was a full-time bank staffer, whereas she was actually a freelance sales agent! .

Another anecdote: ICICI Bank organized free Aadhar Card camps in the foyers of a residential building in a posh Borivali neighbourhood. While one solitary minion sat in in the foyer taking fingerprints, mugshots, etc., half-a-dozen bank officials hung around persuading the waiting people to open accounts with ICICI Bank, and visited their homes on various pretexts. And they were pushy – it was very difficult to say no to them! Why are banks so keen on opening lots of accounts? Because it "provides customer base for ongoing cross-sell through branches". In other words, every account holder is a potential customer for credit cards, loans, etc.

And now, back to HDFC Bank. Let's look at their online behaviour.
As a customer, I have given my email address to HDFC Bank to enable them to keep me informed of my account balance, etc. Here's an example of an acceptable email from HDFC Bank:
But then HDFC Bank doesn't stop at that. Here's an example of a salesman-like email, which is tolerable only because debit cards are an intrinsic part of modern banking:
But HDFC Bank doesn't stop at selling their own products either, they try selling you other companies' offerings, earning advertisement revenues like a newspaper company. Here's an example:
Surely, advertising Amazon's festival sale is beyond the boundaries of the client-banker relationship. Advertising cannot be considered a part of a bank's regular activities. Is this why we give the bank our email address? Using the bank's customer base as a captive market for selling the products of other companies is abuse of trust and misuse of the client's information!
HDFC Bank earns a large proportion of its revenues from third party product sales, fees and commissions. See this slide from HDFC's investor presentation:

Bottomline: In their mad race for year-on-year growth, retail bankers are crossing over some boundaries of the client-banker relationship. HDFC Bank is abundant in examples of this unwholesome trend.

These may not necessarily be adequate grounds for filing complaints to RBI or the banking ombudsman, or for going to consumer court. But this distasteful behaviour shows a tendency to exploit the customers' ignorance, dependency and blind trust in their banks.

[Please share your experiences. Email or call me.]
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2

10th September, 2016, Cuttack: One is puzzled by the accounting treatment for Justice Indrajit Mahanty's Rs 2.5 crore working-capital loan for his hotel, The Triple C. Lakhs of rupees are withdrawn and repaid every month in two SBI loan accounts in the name of "Justice Indrajit Mahanty" and strangely, not in the name of Latest Generation Entertainment Pvt. Ltd., the company that has leased the hotel from him. As a High Court judge, Justice I. Mahanty gets a monthly salary of Rs. 1.35 lakhs, and therefore is liable to pay Income Tax. But repayment of principal plus interest could reduce or eliminate his taxable income. Suppose his tax returns are dodgy, can Income Tax authorities summon his lordship personally for questioning u/s 131 of Income Tax Act, and compel production of his lordship's books of account?

We asked Mr Binoy Gupta, a retired Chief Commissioner of Income Tax (CCA), who holds a Ph.D. in Law. His reply was: "There are no exemptions in any law for any Supreme Court or High Court Judges from any judicial or quasi judicial proceedings. Our department has taken action under the Income Tax Act against them."

We requested Mr Gupta for case studies (with or without the names of the judges) to substantiate his claim of having taken action against judges. His response was: "I can not give any instances today. But I stand by my statement that Judges of the Supreme Court and High Courts have no special status so far the applicability of Income Tax Laws are concerned."

And then Mr Gupta added that bringing a judge to justice is a tough job. He wrote: "If any govt. servant engages himself in business, his department can and does take action. But the procedure for taking action against Judges is far too complex... impeachment which is extremely difficult."

Given the absence of case studies and other details of judges being held accountable by Income Tax authorities, our gut feeling is: IT authorities will never dare to summon his lordship, because (a) they would be in awe of a high court judge, and (b) because the high court has superior jurisdiction over the Income Tax department, and not vice versa. Even if judges do not enjoy de jure immunity from quasi-judicial and administrative authorities, they enjoy de facto immunity. No government official will risk rubbing a high court judge the wrong way by questioning him, even if the law permits him to do so!

Justice Indrajit Mahanty may or may not have broken any laws, but he is definitely in breach of the code of ethics on multiple counts. Must we all act like Gandhi's three monkeys and remain silent?

In return for such unquestioned authority and immunity, judges are expected to keep their affairs transparent and straightforward, by abstaining from business activities. Their income should ideally consist of their salaries, and interest on fixed deposits etc. -- nothing more complicated than that. To quote YK Sabharwal, former Chief Justice of India, who spoke on the Judicial Canon of Ethics, "Almost every public servant is governed by certain basic Code of Conduct which includes expectation that he shall maintain absolute integrity... manage his financial affairs in such a manner that he is always free from indebtedness, and not involve himself in transactions relating to property with persons having official dealings with him." Please note that seeking building permissions, bank loans, hotel licenses, etc. etc. are all transactions with the government, administration and public sector, who all have "official dealings" with a high court judge in his judge-like capacity. Such transactions adulterate the purity of Justice Indrajit Mahanty's judgment.

According to the Restatement of Values of Judicial Life (adopted by Full Bench of Supreme Court on7th May, 1997), "A Judge should not engage directly or indirectly in trade or business, either by himself or in association with any other person. 

And according to the Bangalore Principles of Judicial Conduct, 2002, "A judge shall not only be free from inappropriate connections with, and influence by, the executive and legislative branches of government, but must also appear to a reasonable observer to be free therefrom."

Read all these documents on judicial ethics and in that context, understand the significance of Justice I Mahanty's actions. Justice Indrajit Mahanty may or may not have broken any laws, but he is definitely in breach of ethics on multiple counts.

So, must we all remain silent like Gandhiji's three monkeys? Must we all adopt a policy of See-no-evil, hear-no-evil, speak-no-evil when it comes to judges? Must the adulteration of our judicial services be allowed to continue under cover of a conspiracy of silence?

ISSUED IN PUBLIC INTEREST BY
Krishnaraj Rao
9821588114
krish.kkphoto@gmail.com

Posted By 
Sulaiman Bhimani 
9323642081 
sulaimanbhimani11@gmail.com 

7th September, 2016, Cuttack: Earlier this week, Justice Indrajit Mahanty of Orissa High Court admitted that he "carries a loan burden for his long-time business outfit", through an opinion piece that was written on his behalf titled "Media sensation at times hits great guys, hurts society" in The Pioneer. (The "loan burden" is a Rs 2.5 crore working-capital loan for his hotel, The Triple C, which was borrowed in 2009 from SBI. Till this day, amounts ranging between one and two lakh rupees are drawn and repaid every month in the name of "Justice Indrajit Mahanty".) The author, clearly adores Justice Mahanty, writes, "As a lawyer, he became too eminent too soon only because of his keen commonsense, command over the English language and the superb manner of making complex Acts simple for judges and clients alike. He drives points home the same way as smart kids do tricycles." The point of the article is that it is acceptable that Justice Indrajit Mahanty has a big business loan to his name, and runs a hotel, because of his love for humanity, and therefore, our article questioning the ethics of his actions is a "terribly misplaced allegation". The author argues, "Yes, there is a loan burden, not a robbery charge. Yes, he ran it to add value by generating employment for many. The only thing people would like to know is whether or not his ‘judicial conduct is appropriate and above board’; whether or not he is selling judgment, and if he has the knowledge and skills to help the suffering humanity."

Is this a reasonable argument?

The implications of a high judge taking a business loan from a bank, and using it to run a hotel, are far-reaching. Although Justice I. Mahanty is only 55 years old, he is already number two in seniority at Orissa High Court. Being the son of well-known Barrister Ranjit Mohanty, he is influential and well-connected in the legal fraternity. In the next 5-10 years, his career track can make him Chief Justice of Orissa HC, a Supreme Court judge and even Chief Justice Of India.

The Triple-C Hotel can be need not necessarily be a success story. Experienced businessmen like Vijay Mallya often fail to repay the banks; so, is it totally improbable that a part-time businessman like Indrajit Mahanty may fail to pay back what he owes to State Bank Of India?

However, The Triple-C Hotel can be need not necessarily be a success story. Experienced businessmen like Vijay Mallya often fail to repay the banks; so, is it totally improbable that a part-time businessman like Indrajit Mahanty may fail to pay back what he owes to State Bank Of India?

What happens if Justice Indrajit Mahanty defaults and the matter goes to Debt Recovery Tribunal?

  1. Does Debt Recovery Tribunal (DRT) or Debt Recovery Appellate Tribunal (DRAT) get jurisdiction over Justice Indrajit Mahanty?How will Justice Mahanty (who may by then be Chief Justice of Orissa High Court, a Supreme Court judge even Chief Justice of India) be an appellant or defendant before DRT or DRAT?

  2. Does Justice Indrajit Mahanty appear before Orissa High Court?Suppose the order of DRAT is further appealed, can Justice Indrajit Mahanty be an appellant or defendant before Orissa High Court? If not, then what is the proper forum to hear the matter?

  3. Can any tribunal or lower court entertain a matter against any judge of the higher judiciary in respect of his private affairs, such as bank loans or hotel business? Will such proceedings strengthen his public image as a judge, or will it damage it? And what will such cases do to the image of the judiciary?

  4. If a high court or supreme court judge is before a lower court or tribunal, what happens to his superior jurisdiction over such lower court or tribunal? Won't this create a constitutional anomaly?

Apologists and admirers of Justice Indrajit Mahanty, please remember that this is not about one man's goodness or integrity, it is about the integrity of our judiciary as a whole.

ISSUED IN PUBLIC INTEREST BY
Krishnaraj Rao
9821588114
krish.kkphoto@gmail.com

Posted By

Sulaiman Bhimani

94323642081

sulaimanbhimani11@gmail.com