The ₹7.25 Cr Book Scandal

Описание: How to Buy a Bestseller Using Public Money?

In May 2025, a massive controversy erupted in the Indian banking sector. Union Bank of India, a Public Sector Undertaking (PSU), sanctioned a massive bulk purchase of a book titled "India @ 100" authored by former Chief Economic Advisor Krishnamurthy Subramanian.

While promoting financial literacy is a noble goal, the numbers and the timeline of this deal raise serious questions about Corporate Governance and the misuse of Taxpayer Money.
In this video, we break down the forensic details of the transaction that forced the government to step in.

🔍 The Key Facts (The Anatomy of the Deal):
1. The "Artificial" Bestseller
In India, selling 5,000–10,000 copies makes a book a national bestseller. Union Bank placed an institutional order for ~200,000 copies (1.89 Lakh paperback + 10k hardcover). This single order artificially inflated the book's status, bypassing actual market demand.

2. The "Pre-Publication" Payment Anomaly
The most damning evidence is the timeline. Reports indicate that nearly 50% of the payment (approx. ₹3.5–4 Crores) was released to the publisher (Rupa Publications) in advance, before the book was even published.
Question: Since when do PSU banks pay crores in advance for a product that doesn't exist yet?

3. The Governance Failure
The deal was so irregular that an Executive Director at the bank reportedly refused to ratify the expense, stating he was kept in the dark. Consequently, a General Manager (Girija Mishra) was suspended as the fall guy for this procedural lapse.

Why This Matters?
This isn't about politics; it's about Economics.

Union Bank is a PSU: Its capital comes from public deposits and taxpayers.
Opportunity Cost: ₹7.25 Crores could have funded hundreds of MSME loans or updated digital infrastructure. Instead, it was used to turn a book into a marketing prop.

In a PSU Bank, a transaction of ₹7.25 Crore cannot be executed by 'one person' alone. It requires a strict Maker-Checker mechanism, multiple layers of approval, and budgetary sanctions.
If 'one person' was indeed able to release a ₹4 Crore Advance Payment without the book even being published, it proves that the Bank’s Internal Control System failed.
When checks and balances collapse, it is an institutional failure, not just an individual error. We are questioning the Corporate Governance, not just the employee.

We need to ask: Is this "Marketing" or is this "Corruption"?

📂 Sources & References:
The Economic Times: Union Bank probes lapses in purchase of books for Rs 7cr.
Business Standard: Union Bank's ₹7.25 cr book purchase faces heat; GM suspended.
Deccan Herald: Govt cuts short K V Subramanian's IMF tenure amid book row.

Let’s Discuss:
Do you think banks should use depositor money to bulk-buy books for "promotion"? Let me know your thoughts in the comments!

credits- marketswithjay

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