Silver Bank Scandal: Depositors Accuse 3 Former Officials of ‘Criminal Drift’ to PM

A group of individual depositors has directly challenged Prime Minister Navin Ramgoolam to intervene in the Silver Bank scandal, alleging a “chain of irresponsible decisions” and “criminal drift” that has devastated families and drained billions from the nation’s financial system.

In a scathing letter to the Prime Minister, savers accused the former government, including ex-Governor of the Bank of Mauritius (BoM) Harvesh Seegolam and former Finance Minister Renganaden Padayachy, of permitting systemic failures.

The group claims the fallout from the bank’s collapse more than two years ago is “humanly devastating,” leaving many who lost their life savings feeling abandoned by the state.

Allegations of Institutional Negligence

The depositors argue the collapse was not an economic inevitability but the result of institutional failures.

Central to their grievance is the 2021 granting of a banking licence to a structure controlled by Ginni Gupta—who reportedly lacked banking experience—and her links to Prateek Gupta, a figure previously cited in international legal cases.

The letter highlights several “incomprehensible” lapses:

• Public Fund Injections: Between 2022 and 2023, approximately Rs 3 billion from the Covid-19 Projects Development Fund was allegedly placed in the bank without transparency or tenders, despite missing financial statements.
• Suspect Transfers: The group claims these funds masked a rapid USD 40 million disbursement to entities linked to Prateek Gupta.
• Toxic Lending: Roughly Rs 8.1 billion in “toxic loans” were reportedly granted to newly created companies without solid guarantees before being moved abroad.

“Silence of the Institutions”

The signatories point to a disturbing timeline where the bank continued to accept new deposits in 2023 even while Central Bank officers were on-site.

They further allege that while the BoM denied exposure to Gupta-linked companies in early 2023, court documents later linked the bank’s financial guarantees to international fraud.

Criticism was also levelled at the slow pace of action, noting the bank was only placed under administration in February 2024.

The depositors questioned why foreign officials were allowed to leave the country without restriction and attacked the “excessive cost” of private conservators.

Specifically, Sattar Hajee Abdoula of Grant Thornton and Arvind Gokhool were cited for receiving roughly Rs 60 million in fees for what the group termed “doing nothing.”

Calls for Justice and Restitution

The group has called for a full forensic investigation, the tracing of overseas funds, and the prosecution of those responsible, including former BoM Director Rama Sithanen and ex-Relationship Manager Rajiv Ramcharitar.

With remaining assets estimated at Rs 1.2 billion, the depositors are demanding priority over public funds in any liquidation process.

“Beyond the figures,” the letter concludes, “the trust of citizens in our institutions is at stake.”

The group urged the Prime Minister to prioritise the repayment of individual savers who had simply sought a “peaceful end to their lives.”

Ramgoolam slams “Institutional Conspiracy” but ignores 1,000s of Silver Bank victims

Prime Minister Navin Ramgoolam has launched an unprecedented attack in the National Assembly, labelling the Silver Bank scandal an “institutional conspiracy” that orchestrated the siphoning of billions of rupees while leaving individual savers in financial limbo.

Addressing Parliament last Tuesday, 7 April, the Prime Minister detailed a systematic “looting” of the bank’s assets.

He revealed that out of Rs 8.3 billion in loans, a staggering Rs 8.1 billion are now classified as non-performing. To date, authorities have managed to recover only Rs 209 million.

Allegations of Political Interference

The Prime Minister’s charge focused heavily on the previous administration and its appointees. He specifically targeted:

• The 2021 Licensing: The decision by the Bank of Mauritius, then led by Harvesh Seegolam, to grant a 75% stake to Ginni Gupta, despite an alleged total lack of banking experience.
• VIP Treatment: Claims that a close associate of Prateek Gupta received “VIP treatment” at the airport following political instructions from the Renganaden Padayachy-led Ministry of Finance.
• Artificial Inflation: The revelation that Rs 3.55 billion in public funds were injected into the bank, which Ramgoolam alleges was done solely to “artificially inflate” the institution’s balance sheet.

The Gupta Connection

The financial scale of the scandal is vast, with approximately Rs 7.9 billions reportedly siphoned toward entities linked to the Gupta family.

In response to the “pillaging,” the Prime Minister confirmed that two arrests have already been made on money laundering charges and an Interpol alert has been issued. He further pledged to bolster investigative capacities to ensure all responsible parties face justice.

The Human Cost Ignored

Despite the high-level accusations and the detailing of systemic fraud, the Prime Minister offered “not a word” regarding the fate of the bank’s individual depositors.

While the government focuses on the “institutional conspiracy” and legal proceedings, victims of the collapse remain without a clear roadmap or any concrete measures regarding the reimbursement of their life savings.

For those directly hit by the bank’s downfall, the wait for visibility on their financial future continues.

Portalis calls on 1,000s of victims to unite for their lost savings

Desperate savers gathered outside Silver Bank’s offices on Friday, 10 April 2026, to demand the full restitution of their deposits following a government decision to move the embattled institution into liquidation.

The group, led by spokesperson Gérard Portalis, issued an urgent public appeal for all victims to unite after the failure to secure a buyer.

The move to liquidate, initiated on 30 March, has left approximately Rs 1.4 billion in individual deposits—much of it held in fixed-term accounts—at critical risk.

‘Anxiety and Uncertainty’ for Families

The demonstrators highlighted the “devastating human impact” of the bank’s collapse, describing a climate of “anguish and uncertainty” for families who now face the potential loss of their life savings.

For many, this is a double tragedy; a significant portion of the victims were previously depositors at the former Banyan Tree Bank before it was taken over by Silver Bank.

A Systemic Failure

Mr Portalis characterized the collapse not as a commercial accident, but as the result of a “profoundly failing system.” The group’s grievances include:

• Toxic Loans: An estimated Rs 8 billion in bad debt.
• Lack of Transparency: Many depositors claim they only discovered the severity of the crisis through the press, including news of unaudited accounts dating back to 2021.
• Suspicious Activity: Allegations of massive loans and suspect transfers that were hidden from the public eye.

The Fight for Restitution

With no buyer able to raise the necessary funds to rescue the bank, the depositors are now awaiting a final ruling from the liquidator and the Court.

Standing before the media in Ébène, the group called on all remaining individual savers to join their organized front to press the government for a full refund.

“We are waiting with concern,” Portalis stated, as the group prepares to challenge the liquidation process to ensure individual savers are not left behind.

Source: Le Mauricien