The Nagarwala Scandal Book Review: Mother Of All Scams

Every time I pass by the State Bank of India on Parliament Street, New Delhi, I am reminded of Nagarwala and how effortlessly the conman duped the bank of Rs 60 lakh in cash. This memory is especially vivid now that the present government has insisted that all non-government organisations (NGOs) in India with accounts under the Foreign Currency Regulation Act transfer to this particular branch.

I was a college student on May 24, 1971, when Rustom Sohrab Nagarwala called the Chief Cashier of the bank, VP Malhotra, and asked him over the phone to withdraw Rs 60 lakh and deliver it to an unidentified person who would utter a code word. The retired Army captain mimicked both PN Haksar, who was the Prime Minister’s secretary, and Mrs. Gandhi herself during the same conversation.

Many, like me, wondered how a senior bank official could be so gullible as to fall for Nagarwala’s trap and deliver the money in two trunks to a man who claimed he would transport it by aircraft for an operation in Bangladesh. Even worse, Malhotra believed he would receive a receipt from the Prime Minister for the large sum delivered to the man, who turned out to be Nagarwala himself.

The story did not gain much traction at the time because both Nagarwala and Malhotra were quickly arrested, and almost all the money was recovered. Furthermore, the case was heard and led to Nagarwala’s conviction within a few days. However, Opposition leaders kept the story alive, alleging that Mrs. Gandhi had a secret account in the bank and used to withdraw cash delivered to her home.

There were also insinuations that the amount, a significant sum in those days, was meant for her son Sanjay Gandhi, who owed money to the Haryana government for the sprawling land allotted for his Maruti car project. The government appointed a commission led by a former Supreme Court judge to investigate the case. Despite these efforts, the Nagarwala scandal remains, to quote Winston Churchill, “a riddle wrapped in a mystery inside an enigma.”

Well-known journalists Prakash Patra and Rasheed Kidwai have meticulously pieced together every aspect of this puzzling story to provide a complete picture of the scandal. In retrospect, the Chief Cashier’s actions seem more intelligent and responsible compared to other notable figures who fell for bizarre schemes, such as the national stock exchange chief who was “guided by an unidentified Himalayan Yogi” or the chairperson of India’s second-largest bank, who was jailed for misusing her authority to benefit her husband’s firm.

Despite the detailed account provided by the authors, certain questions remain unanswered. The book establishes some incontrovertible facts, notably the lack of evidence that Mrs. Gandhi or her secretary called Malhotra that day or that the money belonged to her. The investigation’s standard procedures were not followed, as the government wanted to close the case swiftly and avoid scrutiny of the Prime Minister’s possible involvement.

Hints in the book suggest that Nagarwala might have been an agent of an intelligence agency, leveraging his knowledge of their operations for the heist. The possibility of him being a ventriloquist capable of mimicking Mrs. Gandhi’s distinct voice is debatable. Malhotra’s repeated “Mataji, Mataji” indicates his readiness to be mesmerised, whether by the genuine or a counterfeit voice. The authors debunk myths about the mysterious deaths of those involved in the scam.

The Reddy Commission’s susceptibility to deceit is evident, as is the manipulation of the FIR and case diaries by the police to expedite Nagarwala’s punishment. Malhotra’s statements, along with those of others, including Mrs. Gandhi, who claimed the scam did not concern her but closely monitored the developments, must be viewed skeptically.

While Patra and Kidwai may not reveal groundbreaking new information about the heist, they provide an unputdownable crime thriller where the lines between the investigator and the investigated blur. This scandal stands unparalleled, even compared to other heists like the Chelambra case, where a single individual escaped with millions in cash and gold. The Nagarwala scandal remains a compelling tale of audacity, deception, and mystery.

Book: The Nagarwala Scandal

Authors: Prakash Patra and Rasheed Kidwai

Publisher: HarperCollins India

Pages: 262

Price: Rs 399