Lakshmi Vilas Bank amalgamation with DBS akin to 2G spectrum scam: Subramanian Swamy

NEW DELHI: BJP Rajya Sabha MP Subramanian Swamy on Thursday urged Prime Minister Narendra Modi to liken the amalgamation of Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd to the 2G spectrum scam.

Swamy also urged Modi to put on hold the amalgamation of LVB with DBS Bank India and conduct a forensic audit of the merging bank.

Swamy in a letter to Modi, a copy of which is posted on his twitter handle, said that LVBs merger into DBS India is one of the most scandalous government financial institution decisions.

He said the actions of the Reserve Bank of India of ignoring the interests of LVB share and bond holders invariably parallels with the 2G spectrum scam in terms of arbitrariness, unreasonableness and malafide decision.

The RBI in its scheme of amalgamation for LVB with DBS India had written down the share capital and Rs 318 crore worth of tier 2 bonds.

Swamy also requested Modi to (a) Assess the allegation against DBS made internationally and in DBS home country Singapore on money laundering (b) Request for an investigation by the Central Bureau of Investigation (CBI) into the functioning of the RBI, especially in the light of the fact that CBI has never found it necessary even to investigate any office of the RBI in any of the high profile scams (c) The healthy functioning of RBI must remain one of the high priorities of our government. And hence the present RBI Governor be sent out on indefinite leave till investigations are over. Also, the RBI board and advisory committees be reconstituted.

Source: IANS