LS Clash: Patra's 'Exciting' Bank Fraud Allegation During Indira's Tenure Incites Opposition Fury

New Delhi, Dec 3 (NationPress) Following a series of disruptions, both chambers of Parliament resumed their regular activities on Tuesday; however, the atmosphere was filled with intense verbal confrontations between the Treasury and Opposition benches.

The uproar commenced when BJP MP Sambit Patra brought up the ‘enigmatic and sensational banking fraud’ of 1971 in an attempt to challenge the Congress party, which resulted in an uproar from the latter. It was only thanks to the intervention of Lok Sabha Speaker Om Birla that Congress members calmed down and moderated their loud protests.

The Parliament, which had been effectively ‘paralyzed’ for a week, finally returned to normal operations this morning, with the Samajwadi Party (SP) addressing the Sambhal violence issue and attributing the ‘conflict between Centre and state’ as the cause of the violent unrest in the city.

While discussing the Banking Laws (Amendment) Bill 2024, Sambit Patra, BJP’s first-time MP from Puri, spoke about systemic corruption in the banking sector and emphasized the necessity to address existing loopholes. When he referenced one of the most notorious banking fraud cases in history, which occurred during the Indira Gandhi era, it sparked a significant uproar and drew vehement protests from Congress members.

Recalling the Nagarwala scandal of 1971, the BJP MP described it as one of the most enigmatic and thrilling tales of banking fraud, which transpired during Indira Gandhi's administration.

“On May 24, 1971, a call was made to the Parliamentary branch of the State Bank of India. Mr. Ved Prakash Malhotra, the bank manager, was taken aback upon hearing the voice on the other end. It was Indira Gandhi herself. She instructed the bank manager to release Rs 60 lakh to Nagarwala,” Patra recounted.

Patra’s direct accusation against the then Congress Prime Minister infuriated the grand old party. KC Venugopal stood up in protest and forcefully countered the allegations by asserting that her strong leadership earned her the title of ‘Maa Durga’ from the then BJP stalwart Atal Bihari Vajpayee.

As the agitated Congress members continued their loud protests, the Speaker proposed to address their grievances by removing Indira Gandhi's name from the records.

Finance Minister Nirmala Sitharaman also stepped in to defend Patra, disputing the claims that Vajpayee referred to the former PM as a ‘Durga avatar’.

The Nagarwala scandal of 1971 is considered one of the largest financial scandals during Indira’s rule, with allegations so serious they posed a major threat to the then Congress government’s stability. Several publications have referenced a ‘very secret call’ made to the SBI cashier by someone impersonating Indira Gandhi, instructing the manager to hand over Rs 60 lakh to Rustam Sohrab Nagarwala, a retired Army captain.

Patra also informed the assembly that the Reddy Commission was established to investigate the allegations.

“Although Indira Gandhi was not explicitly named, the stain could never be erased,” he concluded.