On May 24, 1971, INR 60 lakh were withdrawn from the State Bank of India, Parliament Street branch, and given to a "Bangladesh ka babu" (Hindi for "a man from Bangladesh") after the chief cashier, Ved Prakash Malhotra, got a call purportedly from the then Prime Minister of India Indira Gandhi asking him to do so.
Later, it was discovered that the former army captain, Rustom Sohrab Nagarwala, then attached to Indian intelligence agency R&AW (Research and Analytical Wing), collected the money from Malhotra, by "mimicking the voice of Mrs. Indira Gandhi", presumably to divert the funds to the Mukti Bahini in its guerrilla-liberation campaign from West Pakistan. Nagarwalla, it was later alleged, was about to leave that same evening for Nepal. He was arrested, however, after Malhotra went in person to collect a receipt from P. N. Haksar, Indira Gandhi's personal secretary, informing him that the requested payment as per the instructions of Mrs. Indira Gandhi was completely done. Haksar was stunned to hear this and informed Malhotra that Mrs Gandhi had instructed nothing of the sort and urged him to inform the police immediately.
The opposition parties suspected that the money belonged to Indira Gandhi. They also alleged that it was not an isolated case.
The case investigating officer, D. K. Kashyap, investigating the case was killed in a car attack. Nagarwala was sentenced for four years and died in prison in February, 1973. This was due to deliberate neglect of his increasing ill-health, a point in fact later confirmed in an official police enquiry.
A Commission of Inquiry was set up by Janata Party under Justice P. Jagan Mohan Reddy on June 9, 1977, to probe into the Nagarwala case.
Justice Jaganmohan Reddy listed four "incontrovertible facts" - one of them being the fact that Indira Gandhi did not have any account in that branch - but concluded that they were not sufficient to hold that the money belonged to her. "There were several lacunae," he said, and listed them. "To supply an answer to these (lacunae) would force me to leave the safe haven of facts which required to be established by evidence and enter the realm of conjectures and speculation."
Reference : http://en.wikipedia.org/wiki/1971_Nagarwala_scandal
Later, it was discovered that the former army captain, Rustom Sohrab Nagarwala, then attached to Indian intelligence agency R&AW (Research and Analytical Wing), collected the money from Malhotra, by "mimicking the voice of Mrs. Indira Gandhi", presumably to divert the funds to the Mukti Bahini in its guerrilla-liberation campaign from West Pakistan. Nagarwalla, it was later alleged, was about to leave that same evening for Nepal. He was arrested, however, after Malhotra went in person to collect a receipt from P. N. Haksar, Indira Gandhi's personal secretary, informing him that the requested payment as per the instructions of Mrs. Indira Gandhi was completely done. Haksar was stunned to hear this and informed Malhotra that Mrs Gandhi had instructed nothing of the sort and urged him to inform the police immediately.
The opposition parties suspected that the money belonged to Indira Gandhi. They also alleged that it was not an isolated case.
The case investigating officer, D. K. Kashyap, investigating the case was killed in a car attack. Nagarwala was sentenced for four years and died in prison in February, 1973. This was due to deliberate neglect of his increasing ill-health, a point in fact later confirmed in an official police enquiry.
A Commission of Inquiry was set up by Janata Party under Justice P. Jagan Mohan Reddy on June 9, 1977, to probe into the Nagarwala case.
Justice Jaganmohan Reddy listed four "incontrovertible facts" - one of them being the fact that Indira Gandhi did not have any account in that branch - but concluded that they were not sufficient to hold that the money belonged to her. "There were several lacunae," he said, and listed them. "To supply an answer to these (lacunae) would force me to leave the safe haven of facts which required to be established by evidence and enter the realm of conjectures and speculation."
Reference : http://en.wikipedia.org/wiki/1971_Nagarwala_scandal
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