Silver Bank Case: Prateek Gupta's Conviction in London Raises Questions

The Silver Bank case continues to raise serious questions. The situation escalated after the High Court in London held Prateek Gupta responsible for a major fraud related to nickel trading. According to the ruling, the Indian businessman and companies under his control orchestrated a fraudulent scheme. He has been ordered to pay up to $600 million. This decision brings to light the murky aspects surrounding Silver Bank.

Authorities, particularly the Financial Crimes Commission (FCC), have been scrutinizing Silver Bank's activities for several months. The bank obtained its operating license in 2021. Between 2022 and 2023, seven companies linked to Prateek Gupta reportedly each received substantial loans. These loans, ranging from Rs 157 million to Rs 200 million, are now classified as "toxic loans" by investigators due to the high risks they posed to the financial stability of the institution.

The investigation aims to establish accountability and clarify the connections between Silver Bank and entities associated with Prateek Gupta, although the bank has so far denied any direct involvement in the actions attributed to the Indian businessman. However, the primary shareholder of Silver Bank is his wife, Ginni Gupta, who reportedly holds about 75% of the shares through a company registered in the Cayman Islands. Since February 2024, the bank has been placed under conservatorship.

The controversy intensified when the Prime Minister confirmed in Parliament that public funds had been placed in Silver Bank prior to its placement under special administration. A total of Rs 3.55 billion, sourced from institutions and agencies linked to the state, including some municipalities, is said to have been invested in Silver Bank Limited.

As part of this investigation, the FCC arrested a former senior executive of the bank. Chetan Singh Ramcharitar, Senior Relationship Manager, has been charged with money laundering.