Whole nation comes to a standstill when news broke on ANN7 stating BOB (bank of Baroda) cutting off Financial ties with the Gupta’s owned companies giving the reasons as substantial risks involved in providing banking services to the Gupta family and its applicants. While Guptas termed this as a invalid, irrational and unlawful decision based on speculative grounds which may put the financial interest of thousand of its employees in danger and decided to take the matter further in court against the bank.
The bank said that the applicants are facing allegations of unlawful conducts including corruption and money laundering but guptas,on the other hand feels this is a conspiracy against them as they have never received any queries by the bank seeking a clarification about the same allegations.
It was further quoted by the bank that they decided the same as they fear further reputational commercial risks out of the recent allegations against their clients but guptas said these concerns will be met after the court order. Though the bank says that they have given sufficient time to Guptas for account closure and making alternate plans,guptas replied that 23 days are just not at all enough to safeguard the jobs of thousands of employees and this is clearly unreasonable keeping in mind that almost every other bank had cut ties with them already and now there is a strong possibility that no employees, suppliers or debtors can be paid till another arrangement is made,
The bank, however seems likes ignoring the fact when they said that longer notice wont improve prospects of finding alternative banking services and said they also feared administrative sanctions from SARB(South African reserve bank).though guptas have said this as undue pressure being brought up in the bank. They further added that its unjustifiable limitation of applicant’s right to freedom of trade, occupation and profession. In reply, BOB said that if the applicant suffers prejudice, its not our fault.
This certainly comes as a shock for the whole country where the livelihoods of thousand of people is in danger and guptas are still trying their best to avoid their same by challenging the matter in court seeking sufficient time to manage alternate solution to their banking needs. It would be really interesting to see how the matter unfolds in the coming days.