Rs 7.6 Billion in Toxic Loans Exposes Silver Bank Scandal

An internal audit dated February 8, 2024, revealed that Silver Bank faces Rs 7.6 billion in bad debts. These non-performing loans are spread across 55 borrowers—39 foreigners and 16 locals—including Rs 3 billion from the Covid Projects Development Fund and Rs 880 million in public deposits from NIC, Curepipe and Port Louis municipalities, and the Mauritius Housing Company.

Chetan Singh Ramcharitar, also known as Rajiv, a former Senior Relationship Manager, has been charged with two provisional counts of money laundering involving Rs 1.2 billion.

Authorities allege he orchestrated fraudulent banking facilities for seven companies, some of which are suspected to be fictitious, between October and December 2022.

Investigators accuse him of facilitating these illegal loans to companies linked to businessman Prateek Gupta, who is involved in Trafigura’s nickel fraud case.

Out of the Rs 7.6 billion in total bad debts, Rs 3.55 billion were granted between January 2022 and January 2023 based on fictitious guarantees.

The overall liability, however, continues to weigh heavily on the bank’s finances. Several companies—including Ultra Fabric Trading, Venus Petroleum Holding, Orchid Organics, PennEnergy, Artic Ceramic, Ultron Agro, and Esokia Group—have non-performing accounts.

For example, Ultra Fabric Trading Ltd, owned by Indian national Rajiv Barnard Madi George, is suspected of diverting Rs 175 million.

Silver Bank’s recapitalization was completed in November 2021 by a dual Indian-British entity through the holding company Silver Star SPC.

Ginni Gupta owns 75% of this entity, while Manoj Purushothothaman Menon holds 25%, investing via his Singapore-based firm, New Alloys Trading PTE Ltd.

This move followed the bank’s takeover of the license after the collapse of the former Banyan Tree Bank, which Silver Bank officially acquired on November 11, 2021.

Authorities are closely examining Rajiv Ramcharitar’s frequent trips to Dubai and India to trace the money laundering network and identify potential accomplices.

The Financial Crime Commission (FCC) continues its investigation into the involvement of political and semi-public figures in this financial scandal. Several other individuals are expected to be summoned this week as inquiries progress.

Source: l’Express