Nepotism charge: Fadnavis sends defamation notice to Thakre

Maharashtra Chief Minister Devendra Fadnavis today sent a defamation notice to former state Congress chief Manikrao Thakre for his allegation that the government was favouring private sector lender Axis Bank, where Fadnavis's wife works.
Fadnavis sent the notice through advocate Ganesh Sovani for "baseless allegation regarding Axis Bank-SRA issue", an official in the Chief Minister's Office said this evening.
Thakre had alleged at a press conference in Nagpur two days ago that the Slum Rehabilitation Authority (SR), headed by the Chief Minister, had made it mandatory for hundreds of SRA scheme developers to open accounts with Axis Bank, thus providing it with a huge business.

Thakre asked why a scheduled or a nationalised bank was not chosen for the government scheme.
Amruta Fadnavis, the Chief Minister's wife, works as a Deputy Vice President (Transactional Banking) at Axis Bank and is posted at its central office in Worli in south Mumbai.
"It is surprising to note...Why only one branch of Axis Bank at Worli was chosen by the department," Thakre had said.

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The notice sent to Thakre says, "SRA has been receiving several complaints regarding defaults in payment of rent to eligible and displaced slum dwellers" and to tackle this problem, the developers were asked to open a bank account for every SRA scheme where they are required to transfer the rent electronically.

Under the SRA schemes, builders develop slum lands commercially. In return, they provide free flats to the slum-dwellers.
"Axis Bank had approached the SRA with a novel scheme for opening of Special Accounts for Developers with Zero Balance and No Cheque Facility to ensure that the entitled slum-dwellers get their rent regularly. Axis Bank would not have any advantage from the funds deposited in the account as the same is to be transferred to the account of the slum-dweller within two days from deposit," it clarifies.
"The SRA is not spending any money for these facilities," the notice adds, and also asserts that the "slum-dwellers are not required to open an account with Axis Bank".

It also points out that majority of the shares in Axis Bank are held by public sector institutions such as Life Insurance Corporation of India.
"The Finance Ministry of Union of India had issued a letter dated July 8, 2011 permitting the availing of core banking services of Axis Bank, HDFC and ICICI... Congress-NCP government in Maharashtra has issued a circular dated January 19, 2012, to similar effect" and, therefore, the SRA decided to accept the bank's proposal, the notice says.
Thakre should retract his allegations by tendering an unconditional apology within 15 days, or Fadnavis would initiate civil and/or criminal proceedings for defamation, it states.