THE NCLT on Friday issued contempt notices to the heads of Axis Bank and StandardC for allowing the former head of ILFS Financial Services Ramesh Chandra Bawa to withdraw money and access the lockers in breach of its orders, and directed them to reply in two weeks. The tribunal posted the matter for further hearing on June 7.
The Mumbai bench of the National Company Law Tribunal (NCLT) issued contempt notices to Axis Bank Chief Executive Amitabh Chaudhry, Standard Chartered Bank India Chief Executive Zarin Daruwala and Bawa after the Corporate Affairs Ministry alleged that the banks facilitated Bawa to withdraw/ transfer money from their accounts to his wife Ashakiran and daughter Akansha, apart from letting him access lockers.
Ministry’s counsel Sanjay Shorey, in a separate petition, also sought to implead Ashakiran and Akansha as they are the beneficiaries of these funds. Ministry informed tribunal that Bawa withdrew/transferred Rs 1 crore and Rs 14 lakh from Axis Bank accounts in two instances which are in violation of Dec 3, 2018 order of tribunal which had frozen these accounts. The counsel also said Bawa accessed his lockers with this bank four times since Dec 3. Shorey also said Bawa withdrew money from ICICI Bank but is not impleading bank as it had happened on same day.
On Dec 3, Ministry had mailed a petition to Bawa at 8 am but despite that he withdrew Rs 3 crore from his accounts from an ICICI Bank branch at 10 am, he said. “But we are not including ICICI Bank in petition as hearing was still on when money was withdrawn. But all banks, including Axis and StanC, were informed about NCLT order on Dec 6 and still these two allowed Bawa to transfer funds,” Shorey explained.