RTV has uncovered a major scandal involving fake guarantees issued by Euro Exim Bank, providing concrete evidence that raises serious questions about the integrity of large-scale public projects. The channel’s investigation revealed that these fraudulent guarantees are being used by certain influential figures, dubbed ‘Megha’, who are circulating them under the guise of large contractors. This revelation has cast doubt on the fate of projects funded by billions in public money, igniting widespread concern.
The exposé has triggered a wave of political reactions, with prominent figures like Karti Chidambaram taking immediate action. Chidambaram has already written to the Reserve Bank of India (RBI), which has launched an inquiry into the matter. He has also addressed the Union Finance Ministry, bringing to light critical details about Euro Exim Bank Ltd., a financial entity regulated by the Financial Services Regulatory Authority in St. Lucia and operating under the laws of England and Wales.
Chidambaram expressed serious concern over Euro Exim Bank Ltd.’s issuance of bank guarantees to companies bidding for government contracts, citing reports that the bank charges a 6 percent fee of the guaranteed amount.
He warned that some government departments might be accepting these guarantees without proper verification, posing significant risks to government projects and public funds. Chidambaram emphasized that such practices could undermine the credibility of the tendering process and the financial institutions involved.
In response to these concerns, Karthi Chidambaram has called for a comprehensive investigation into whether Euro Exim Bank Ltd. is authorized to issue bank guarantees under the relevant regulatory framework. He has urged authorities to examine the validity of the guarantees and the bank’s authority to provide them. Should any irregularities be discovered, he advocated for swift corrective measures to protect the integrity of the tendering process and safeguard public resources.