Chapter 9B: the export of money has been the main corporate objective of the Citi ecosystem – one that included HDFC. And tried to take over Axis Bank as well.
If there were a Bharat Ratna for export performance, it would go to the Havala Banks for exporting the Rupee. Hundreds of billions of dollars. With a shipping fee which was more than that charged by any shipping line in the world. And after you paid for shipping – you paid for safekeeping and warehousing the money.
Modiji was absolutely right when he said that if this money came back – it would amount to a tidy amount for each living Indian. It may or may not be an exaggeration but regardless, the amount is huge. More than what the British took back from India. And two Havala Banks had a 80% + share. When you send out billions of dollars daily – you don’t send them on courier bodies or by ship. You need a bank to send it. And that is why the Havala Banks never ever agreed to a locally incorporated company which may credible banks agreed to.
If you see the India operations signed financials. The auditor is Bharat Raut (KPMG) – the country head comes and goes (it has usually been a MBA who was financially illiterate) – but one signature has been common for 30 years. This is the Vice President who signs. This is a post tha doesn’t need RBI approval.
In pursuance of exporting money – Citi and HDFC lobbied to increase the limit of the automatic foreign remittance scheme. Thousands of crores of rupees flew out. To buy high risk overpriced real estate in Dubai or elsewhere. And to fund expensive educational courses. To make both of these more affordable, liberal loans were provided.
Atanu had raised these issues. HDFC Credila has a loan book of supposedly Rs 50,000 crores – ten times the total outlay of the 23 IITs and more than all IITs, all NITs, all AIIMS, all IIIT put together. This is money which should not have left the country.
And it was secured by collateral such as property in India.
It doesn’t end there.
