Silver Bank: A Financial Shipwreck Under Political Tension
The Prime Minister speaks of an "institutional conspiracy" and billions siphoned off, while uncertainties remain. He targets the former government, which he claims managed this case "mafia style."
The parliamentary question from MP Raviraj Beechook, posed on Tuesday, April 7, to Prime Minister Navin Ramgoolam, partially unveiled the Silver Bank Limited affair. Right from the start, the head of government indicated that the latest available audited accounts date back to 2021. Since then, the bank has not submitted any audited accounts for 2022 and 2023. "Silver Bank has been unable to appoint an external auditor," he explained, due to "auditors' reluctance faced with serious adverse information regarding Prateek Gupta in the Trafigura case." This case involves the trading giant Trafigura, which fell victim to a massive fraud estimated at over USD 500 million (Rs 23.5 billion).
Banking License
The Prime Minister also outlined the conditions for granting the banking license and the takeover of BanyanTree Bank by Silver Bank's shareholders in 2021. He described it as "scandalous and suspicious" to allow a 75% stake to a single shareholder, namely Ginni Gupta, Prateek Gupta's wife, despite her lack of banking experience.
The bank's situation rapidly deteriorated. Placed under conservatorship in February 2024, Silver Bank failed to comply with the Bank of Mauritius' directives, particularly regarding capitalization and loan restrictions. Despite interest from potential investors, no acquisition has materialized. As of March 30, 2026, "the Bank of Mauritius had received no complete applications," especially concerning proof of the source of funds. The central bank's board then decided to end the conservatorship and appoint a Receiver.
One of the most striking elements concerns revelations from an internal auditor. According to the Prime Minister, this auditor discovered "loans of about Rs 7.7 billion granted to companies linked to Prateek Gupta," as well as transfers of "Rs 18 million" to him or his entities.
Rs 907 Million of Public Funds
Public sector deposits constitute another sensitive point. An amount of Rs 3.55 billion was invested in Silver Bank. As of February 28, 2026, about Rs 907 million remained, including Rs 523 million from the Covid-19 Projects Development Fund and amounts held by entities like the National Insurance Co. Ltd or the Sugar Insurance Fund Board. According to Navin Ramgoolam, these investments aimed to "artificially create a misleading improvement in the bank's balance sheet." He mentioned decisions "dictated by interventions from the highest authorities," directly targeting former Finance Minister Renganaden Padayachy.
Judicially, an investigation is underway. In January 2025, the conservator reported "what seemed to be a conspiracy to defraud Silver Bank." The case has been referred to the Financial Crimes Commission. Two suspects have been arrested. A request for a red notice with Interpol targets Prateek Gupta.
Rs 7.9 Billion Siphoned
Investigations have revealed massive financial flows. "An amount of Rs 7.9 billion was siphoned off and transferred to several entities in different jurisdictions," stated the Prime Minister. Authorities have seized dozens of loan files, collected statements, and initiated international cooperation procedures with several countries.
The conservator's report, submitted to the Bank of Mauritius, cannot be made public for legal reasons. Nevertheless, the Prime Minister revealed that in March 2024, non-performing loans were estimated at Rs 8.1 billion out of a total portfolio of Rs 8.3 billion. To date, only Rs 209 million has been recovered.
The retention of the conservator has been justified by practical considerations. According to the Prime Minister, replacing him "mid-process would have led to further delays and additional financial implications," even as discussions were ongoing with a potential buyer.
Navin Ramgoolam denounced "a clear pattern of serious mismanagement, but also deliberate fraud," while asserting the government's commitment to protecting the reputation of the Mauritian financial center.
