Viral Video | Sambit Patra Highlights 1971 Nagarwala Scandal as Early Example of 'Phone Banking'

Bharatiya Janata Party (BJP) spokesperson Sambit Patra has sparked a renewed conversation around the infamous 1971 Nagarwala scandal, describing it as an early example of "phone banking." In a viral video
Viral Video | Sambit Patra Highlights 1971 Nagarwala Scandal as Early Example of 'Phone Banking'

Viral Video | Sambit Patra Highlights 1971 Nagarwala Scandal as Early Example of 'Phone Banking'

Bharatiya Janata Party (BJP) spokesperson Sambit Patra has sparked a renewed conversation around the infamous 1971 Nagarwala scandal, describing it as an early example of "phone banking." In a viral video, Patra stated, “On May 24, 1971, Indira Gandhi called SBI’s Parliamentary Branch Manager and asked to release ₹60 LAKHS immediately. A committee was set up that didn’t give any clearance to her. This is an iconic Phone Banking Example.”

While the term "phone banking" usually refers to conducting legitimate banking transactions over the phone, Patra invoked it to highlight alleged misuse of authority in banking practices, drawing parallels between the past and modern controversies.

The 1971 Nagarwala Scandal

The scandal unfolded on May 24, 1971, when Ved Prakash Malhotra, chief cashier of the State Bank of India’s Parliament Street branch in New Delhi, received a phone call from someone claiming to be then-Prime Minister Indira Gandhi. The caller instructed Malhotra to release ₹60 lakh for a "secret mission" tied to national security. Specific code words were used to verify the caller's identity, which convinced Malhotra to comply.

The funds were handed over to a courier who used the agreed-upon code words. However, when Malhotra later sought a receipt from the Prime Minister’s Office, he was shocked to discover that no such request had been made.

Rustom Sohrab Nagarwala, a former army captain, was quickly arrested and confessed to impersonating Indira Gandhi to execute the fraud. Police recovered most of the stolen money, and Nagarwala was sentenced to four years in prison. However, his death in custody under mysterious circumstances added another layer of intrigue to the case.

Conspiracy Theories and Investigations

The scandal has long been shrouded in conspiracy theories. Some speculated that the funds were intended to support the Mukti Bahini, a guerrilla force aiding the liberation of East Pakistan (now Bangladesh). Others suggested it might have been linked to covert government operations.

In 1977, the Janata Party government established the Pingle Jaganmohan Reddy Commission to investigate the incident. The commission's 820-page report criticized the handling of the case by law enforcement and the judiciary but failed to definitively uncover the origins or intended purpose of the stolen funds.

Patra’s Context: 'Phone Banking'

By referencing the Nagarwala scandal, Patra aimed to highlight the potential for misuse of authority in banking, connecting it to contemporary political debates. The term “phone banking” has been used by political leaders to criticize alleged undue influence over financial institutions, often in the context of large loans or other financial irregularities.

Patra’s remarks reignited debates about whether the scandal was a genuine act of fraud or a cover for clandestine activities, with questions about accountability and transparency in banking decisions.

Impact and Legacy

The Nagarwala scandal remains a landmark case in India’s political and banking history, notable for its dramatic elements and unanswered questions. It continues to be cited in discussions on ethics, governance, and financial integrity.

Patra's comments have brought the scandal back into public focus, prompting a reexamination of how power and influence have intersected with financial systems across decades. Whether viewed as a bizarre footnote in history or an enduring cautionary tale, the Nagarwala incident underscores the critical need for robust checks and balances in all institutional frameworks.

The mainstream media establishment doesn’t want us to survive, but you can help us continue running the show by making a voluntary contribution. Please pay an amount you are comfortable with; an amount you believe is the fair price for the content you have consumed to date.

happy to Help 9920654232@upi 

Buy Website Traffic
logo
The Public Press Journal
publicpressjournal.com