On June 9th 2021, the National Company Law Tribunal (NCLT) greenlit a purchase offer for Videocon Group of Industries from an Anil Agarwal-led company.
On June 10th 2021, the CBI filed an FIR against Gautam Thapar, a once-acclaimed business tycoon who is now being investigated on two separate lines of charges related to the Yes Bank scam.
What unites these two episodes, unfortunately, is that they are both glaring instances of the scam- and scandal-hit banking industry.
The first one involves collusion between bank executives and borrowers (the Kochhars and Videocon Chairman Venugopal Dhoot).
The second one involves more than one collusion between bank executives and borrowers (the Thapars and Rana Kapoor’s family).
Both of them are instances of a rich and powerful nexus singularly hijacking the underwriting mechanisms of listed banks for their personal gains.
Let’s explore each of these scandals and try to understand the pattern (if any) in the…