NAGARWALA SCANDAL CASE (1971)

Author: Sabreen bano, united University Prayagraj


To the Point
This case refers to an India’s biggest fraud in 1997. It is a scam case, accused was Rustom Sohrab nagarwala. In this case nagarwala on the name of prime minister Indira Gandhi, fraudulently convinced Ved Prakash Malhotra who was the employee of state bank of India withdraw 60 lakh rupees. Value of 60 lakh in today’s generation in 21stcentuary is 170crore. This is very huge amount which scandal by nagarwala in 1971. In this case there where several of topic would be challenged by public, that how can a person give the banks money to any person only by the call, there is no any responsibility to verify anything? In this case many questions should be arises by people and it is very controversial over the actual events that transpired.
This case Is India’s one of the controversial financial scams, in 1971 during Indra Gandhi tenure. This was fully planned and mastermind political thriller and intertwines element of history. In this controversy.

ABSTRACT
In this case the accused was Rustom Sohrab Nagarwala, who was retired army officer in India. In 1971, 24 may of that year, Ved Prakash Malhotra seating in their office in state bank of India he was the head cashier of the office, he was received a phone call other side someone convincing that he was an assistant of the Indra Gandhi. He says to Mr. Malhotra that Indra Gandhi want to handover a money which its amount was  a 60 lakh rupees by the courier for a secret mission and Malhotra was followed that instruction according to that phone call person, the person who called Malhotra he also  introduced Indra Gandhi on call he says, you can directly ask from Indra gandhi then on the call she was instruct same as that person.
Then Malhotra took a cash all notes should be 100 rupees it also mentions on that instruction, according to instruction he give money to that one unknown person.
After knowing that he got scammed there is no any instruction regarding to money which claim to be given by Indra Gandhi and her assistant. He files FIR in Chanakyapuri police station. After all evidence Rustom Sohrab nagarwala for five years of rigorous imprisonment and died during trial in Tihar jail. In this case there are several of fact which is unsolved because of death of nagarwala. The main point in this case that who scam cam occur is that easy only a phone call who can any person believe that it is not fake any handover the 60 lakh rupees cash in stranger hand. Because 60 lakh is a very big amount in 1990s on that time 60 lakh have value of 170 crore.


USE OF LEGAL JORGON
In this case there is a financial scandal it is most important In India’s history.  In this case by the journalist several of theory came out or also given by the public. “The scam that shook a nation: The nagarwala scam, this the name of book which is written by Rasheed Kidwai and Prakash Patra. In this book the author describes the story or scandal of nagarwala in detail. There was also several of website where this case is mentioned like WIKIPEDIA, YouTube etc. because of death of nagarwala during the trail lots of unsolved mystery and question were unsolved and the exact fact was nobody knows. There are several of fact got challenged first is that who any government bank or any bank can be responsible like that, they give high amount case without investigation? And second was why this much cash took place in bank? And why not Indra Gandhi response in this case until her name was also involved in that, Malhotra also got liable for irresponsibility in bank.
In this book detailed about the case that how nagarwala expose the scandal so easily and where they are arrested and full detailed fact of the case, punishment, and trail of the accused. This case still mystery and unsolved fact and question which arises by public.


THE PROOF
In nagarwala case the accused was a Rustom Sohrab nagarwala in this case he calls to Ved Malhotra and ask a money 60 lakh for a secret mission. At that time there was a conflict between east Pakistan to became a Bangladesh. He claims money in to transfer his voice into Indra Gandhi voice and Malhotra also believed to his voice and ready to follow his instruction and withdraw the money and give to them. The fact of this case is scandal and irresponsibility of bank officer. Nagarwala caused scandal by using a cell phone, posed as a prime minister Indira Gandhi’s secretary. And then as a prime minister talk to Ved Malhotra. This was claiming as a Indira Gandhi and urgently ask for 60 lakh rupees cash for Bangladeshi. After when Malhotra visited to prime minister residence and ask for receipt of money which he gives then he realized that it is a biggest scandal which happen with them.
After is scandal nagarwala found guilty and punish with imprisonment and he die under the trail. Many or theory are released by journalist that Indira Gandhi was also involve in this case and this money transfer to the Sanjay Gandhi 0for his invention which he wants to made an affordable car for India, some theory is that nagarwala was not die he move to Italy but all are only a theory it was not justify ever.


CONCLUSION
Nagarwala case was one of the highest scandal cases in India it is a biggest financial scam. In this case there was a lack of responsibility and withdraw a large amount of money with fraudulently. Through this case there found a big loophole in our country, that how much irresponsible they are it is not a joke that any one call to the bank officer and ask for money and without investigation he hangover the money. It shows that people after reaching high place they become irresponsible.

CASE LAWS
THERE ARE SOME RELEVENT LEGAL ASPECTS;
CRIMINAL PROCEEDURE
The case involved charges under section 419 and 420 of the Indian penal code (IPC), which deal with cheating and impersonation. Nagarwala was initially convicted and sentenced, but the conviction was later set aside, and the case was remanded for a fresh trail. The case highlights the application section 190 and 409 of the IPC. The case also has the issue of whether the trial court should implead a potential co-accused V.P Malhotra and weather the case should be tried jointly.
BOMBAY POLICE
A related case Ranchhod Bhai soma Bhai vs J.D. nagarwala, I.G.P., involved a petition challenging the validity of rule 17 was ultra vires of article 20(2) and 311 of the constitution of India. This case highlights the legal framework governing police discipline and punishment.
GENERAL LEGAL PRINCIPLE
The nagarwala case, though not generating landmark legal precedents; illustrates the principle of criminal law, particularly those related to cheating, impersonation, and criminal breach of trust. The case also demonstrates the importance of proper investigation, evidence gathering, and adherence to legal procedures in criminal trials. The case can be analyzed in the context of the powers of magistrate to take cognizance of offenses, frame charges, and issue process. Its essence, while the nagarwala case itself did not result in significant legal precedents, it highlights the application of various criminal law principles and procedural rules within the Indian legal system.

FAQs
Was the phone call requesting the money a legitimate communication from the prime minister office?
In India, the prime minister cannot directly call to bank for money this would highly irregular, inappropriate, and almost certainly illegitimate if it happens by anyone. In India prime minister or PMO communicates with banks through formal, written, and institutional channels, not through personal phone calls. If bank or individual claims to have received a direct phone call from the prime minister and PMO, it is almost fraud or scam.

Was nagarwala the mastermind behind the fraud, or was he acting under the direction of others?

In the nagarwala case in 1971, Rustom Sohrab nagarwala, a former army officer, was considered the, mastermind behind the fraud, but there has always been speculation about whether he was acting entirely alone or under the direction of others. But he was confessed to the crime. He was tried and sentenced to 4 years of rigorous imprisonment.

Did the state Bank of India and its employees follow proper procedures, or did they fail to exercise due diligence in verifying the government or the bank itself?
In this case state bank of India and its employees to failed to exercise due diligence and did not follow proper banking procedures, which made the fraud possible. there.

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