A circular by the Maharashtra's Slum Rehabilitation Authority (SRA) asking real estate developers to open new accounts with Axis Bank has stirred a hornets' nest with the Opposition calling it 'nepotism' to favour Chief Minister Devendra Fadnavis' wife, who is employed with the bank.
In a strongly-worded statement, Fadnavis denied any wrongdoing. According to the statement, the previous Congress-led government had asked the developers to choose from Axis Bank, HDFC Bank and ICICI Bank to deposit the monthly rent payable to eligible slum dwellers.
The present government found Axis Bank's model to be beneficial as SRA will not have to pay anything for it. "These are zero-balance accounts and slum dwellers will benefit from them," the CM added. Fadnavis said no rules had been violated and the decision had no connection with his wife Amruta, employed with Axis Bank's head office in Mumbai looking after the back-office operations.
The chief minister's office has clarified that she has nothing to do with any such business nor does she have any target. On Saturday, Congress leader Digvijaya Singh had termed the state agency's directive to developers to open accounts with a particular branch of a private bank, where the CM's wife works, "height of nepotism".
The chief minister's office said a defamation notice was served to Singh. The notice demands Singh tender an apology within 15 days, lest legal proceedings will follow.
SRA, headed by the CM himself, had issued an order on February 10, 2016, asking all developers to submit the details of their bank accounts with the Axis Bank's Worli branch for payment of rent to eligible slum dwellers on or before February 15.
The SRA order also said that a daily penalty of Rs 1 lakh would be imposed till February 28 and of Rs 5 lakh from March 1 till April 1 if they failed to submit their details.
Replying to Business Standard, Axis Bank said, "Amruta Fadnavis has been with the bank for over a decade. She is currently a deputy vice-president posted at the bank's head office having risen to her current post purely on merit and hard work. Any insinuation otherwise is grossly unfair and belittles the achievements of a successful career woman."
In a strongly-worded statement, Fadnavis denied any wrongdoing. According to the statement, the previous Congress-led government had asked the developers to choose from Axis Bank, HDFC Bank and ICICI Bank to deposit the monthly rent payable to eligible slum dwellers.
Read more from our special coverage on "AXIS BANK"
The present government found Axis Bank's model to be beneficial as SRA will not have to pay anything for it. "These are zero-balance accounts and slum dwellers will benefit from them," the CM added. Fadnavis said no rules had been violated and the decision had no connection with his wife Amruta, employed with Axis Bank's head office in Mumbai looking after the back-office operations.
The chief minister's office has clarified that she has nothing to do with any such business nor does she have any target. On Saturday, Congress leader Digvijaya Singh had termed the state agency's directive to developers to open accounts with a particular branch of a private bank, where the CM's wife works, "height of nepotism".
The chief minister's office said a defamation notice was served to Singh. The notice demands Singh tender an apology within 15 days, lest legal proceedings will follow.
SRA, headed by the CM himself, had issued an order on February 10, 2016, asking all developers to submit the details of their bank accounts with the Axis Bank's Worli branch for payment of rent to eligible slum dwellers on or before February 15.
The SRA order also said that a daily penalty of Rs 1 lakh would be imposed till February 28 and of Rs 5 lakh from March 1 till April 1 if they failed to submit their details.
Replying to Business Standard, Axis Bank said, "Amruta Fadnavis has been with the bank for over a decade. She is currently a deputy vice-president posted at the bank's head office having risen to her current post purely on merit and hard work. Any insinuation otherwise is grossly unfair and belittles the achievements of a successful career woman."
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