New Delhi: In his maiden address in the Lok Sabha, BJP’s Puri MP, Sambit Patra, triggered a heated debate during discussions on the Banking Law (Amendment) Bill 2024, introduced by Finance Minister Nirmala Sitharaman, as he referred to former Prime Minister Indira Gandhi’s alleged links to the Nagarwala banking scandal from the early 1970s.
Patra’s remark, mocking the Congress, drew sharp protests from the Opposition.
Patra cited a 1971 incident, known as the Nagarwala case, to highlight alleged banking irregularities during Indira Gandhi’s tenure. The scandal revolves around Rustam Sohrab Nagarwala, a retired Indian Army captain who orchestrated a massive con in 1971. On May 24 in 1971, Ved Prakash Malhotra, the head cashier at the State Bank of India’s Parliament Street branch, had received a phone call from someone, impersonating Indira Gandhi. The caller had ordered Malhotra to hand over Rs 60 lakh to a courier for a secret mission related to the liberation struggle of East Pakistan, now Bangladesh. Malhotra complied with the order, believing it to be from the PM office, only to find later that he had been duped as no such instructions were confirmed at the Prime Minister’s Office.
Patra mocks Cong’s ‘phone banking system’ influencing loans
Referring to the scandal, Patra took a sarcastic dig at the Congress for involving in the ‘phone banking’ system. “…Phone banking system of the Congress party, where the two Ps, you need not be a performer, but you have to be a powerful man with powerful connections in the system. The leaders of the Congress party used to dial the banks and order them to give loans. They would say give the loan, don’t assess if it will be returned. Because of their this phone banking system that we were neck-deep in NPAs (non-performing asset). Thanks to Narendra Modi, you rectified the system by introducing insolvency banking,” Patra said.
‘Indira Gandhi didn’t get clean chit in Nagarwala case fully’
Referring to the Nagarwala incident, Patra alleged: “….Mr Malhotra (the banker) had heard the voice of Mrs Indira Gandhi, the then Prime Minister of India. In 1971, Indira Gandhi said give Rs 60 lakh from the bank to Nagarwalaji. Later, Reddy Commission probed the matter. Indira Gandhi’s name was not mentioned by the commission. But, she was also not given clearance in the case fully. Till today, it is the mysterious story of the bank fraud during Indira Gandhi’s tenure…the Nagarwala case.” Patra requested the MPs in the house to read a book on the Nagarwala incident. Earlier, this year Prakash Patra and Rasheed Kidwai had released the book, ‘The Scam That Shook a Nation: The Nagarwala Scandal.’
How did the Opposition react?
Congress MP KC Venugopal condemned the remarks. He called such allegations baseless. He also referred to former Prime Minister Atal Bihari Vajpayee’s praise for Gandhi, describing her as ‘Durga’ after the Bangladesh Liberation war. Citing Rule 94, DMK leader A Raja objected to such references. “Indira Gandhi is not in the House. Referring to her without basis is unwarranted,” he said.
