The institutionalized mechanism is prescribed in the Vigilance Manual of the Central Vigilance Commission (CVC). Anti-corruption measures of the Central Government are the responsibility of (i) Administrative Vigilance Division (AVD) in the Department of Personnel & Training (ii) Central Bureau of Investigation; and (iii) Vigilance units in the Ministries/Departments of Government of India , Central Public Enterprises and other autonomous organizations; (iv) the disciplinary authorities; and (v) the Central Vigilance Commission. In addition, a Special Investigation Cell in the Department of Banking Supervision (DBS) in RBI and a Group of Officers in the Cabinet Secretariat, also examine the complaints received against the Board level appointees of Public Sector Banks (PSBs).
Nature of the complaints against Board level appointees of PSBs includes allegations relating to graft in sanction of credit proposals, compromise settlements, write off, take over of accounts from the other banks, irregularities in grant of advances, abuse of official position, possessing disproportionate assets etc.
Number of complaints received in CVC against Bank Officers of the level of Scale–V and above during the year 2007, 2008, 2009, 2010 and 2011 (January - July) are 83, 116, 101, 107 and 48 respectively. The year-wise and Bank–wise details are annexed.
Such complaints are enquired by the Chief Vigilance Officers/Direct Inquiry Officers in CVC/Central Bureau of Investigation and appropriate action is taken against the delinquent officials as per their Conduct and Disciplinary Rules.
Many complaints received in CVC/Government are found to be anonymous or frivolous in nature. Such complaints are filed in the first instance or sent to the concerned CVO for necessary action. Remaining complaints are taken up by CVC for verification of facts /allegations. Status of such complaints are as under:
SL.No.
|
Status
|
No. of cases
|
1.
|
Recommended for closure
|
175
|
2
|
Recommended for major penalty
|
6
|
3.
|
Recommended for administrative action
|
6
|
4
|
Under Various stages of examination
|
48
|
|
Total
|
235
|
During this period (2007 to till June 2011), CBI has investigated 62 cases out of which 44 cases have been disposed off and 18 cases are still under investigation.
RBI has issued various circulars for prevention of frauds and malpractices in banks .Some of the important circulars are as mentioned below:
(i) DBOD Circular dated 25.8.1992 on recommendation of the Committee to enquire into various aspects relating to frauds and mal- practices in banks
(ii) DBS Circular dated 1.11.1996 conveying recommendations of the Working Group on internal controls and inspection of audit systems in banks.
(iii) DBS Circular dated 20.9.2004 on strengthening of internal vigilance machinery in banks and financial institutions.
(iv) DBS circular dated 16.9.2009 on fraud prevention and management function.
(v) DBS circular dated 31.5.2011 on findings and forensic scrutiny – guidelines for prevention of frauds.
Banks are required to submit report on each fraud to RBI. RBI may discuss these matters in the structured meetings held between the Banks and RBI.
……..
Annexure as referred to in reply to Lok Sabha USQ.No.3750 for 16.12.2011
Year/Bank-wise details of complaints received in CVC against Bank Officers of the level of Scale -V and above during the year 2007 to 2011(till July, 2011)
S.No.
|
Name of Banks
|
2007
|
2008
|
2009
|
2010
|
2011
|
1
|
Allahabad Bank
|
2
|
5
|
3
|
7
|
1
|
2
|
Andhra Bank
|
-
|
2
|
3
|
2
|
1
|
3
|
Bank of India
|
12
|
5
|
2
|
2
|
4
|
4
|
Bank of Maharashtra
|
1
|
2
|
1
|
1
|
-
|
5
|
Bank Of Baroda
|
1
|
7
|
2
|
1
|
1
|
6
|
Canara Bank
|
-
|
2
|
4
|
4
|
2
|
7
|
Central Bank
|
2
|
11
|
5
|
11
|
5
|
8
|
Corporation Bank
|
-
|
2
|
1
|
2
|
1
|
9
|
Dena Bank
|
2
|
2
|
5
|
-
|
2
|
10
|
Indian Bank
|
-
|
-
|
2
|
1
|
3
|
11
|
Indian Overseas Bank
|
1
|
3
|
2
|
1
|
-
|
12
|
Oriental Bank of Commerce
|
3
|
2
|
4
|
4
|
1
|
13
|
Punjab National Bank
|
5
|
18
|
8
|
20
|
4
|
14
|
Punjab & Sind Bank
|
7
|
9
|
9
|
7
|
2
|
15
|
State Bank of Indore
|
2
|
-
|
1
|
2
|
-
|
16
|
State Bank of Bikaner & Jaipur
|
3
|
2
|
-
|
1
|
1
|
17
|
State Bank of India
|
6
|
12
|
24
|
19
|
5
|
18
|
State Bank of Hyderabad
|
1
|
-
|
-
|
-
|
-
|
19
|
State Bank of Mysore
|
1
|
-
|
-
|
1
|
-
|
20
|
State Bank of Patiala
|
2
|
-
|
-
|
5
|
2
|
21
|
State Bank of Travancore
|
-
|
1
|
-
|
-
|
-
|
22
|
Syndicate Bank
|
13
|
12
|
9
|
1
|
1
|
23
|
UCO Bank
|
5
|
1
|
4
|
7
|
3
|
24
|
Union Bank
|
12
|
14
|
9
|
7
|
5
|
25
|
United Bank of India
|
1
|
1
|
3
|
1
|
2
|
26
|
Vijaya Bank
|
1
|
3
|
-
|
-
|
2
|
|
Grand Total
|
83
|
116
|
101
|
107
|
48
|
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today
Former Union Bank of India's Executive Director MU Kini has been exonerated of corruption charges by the CBI after more than two decades
ReplyDeleteRetired banker MU Kini's battle against allegations of corruption has finally come to an end. In April, Mumbai CBI Special Court Judge Vijay R Sikchi exonerated the former Executive Director of Union Bank Of India of all charges leveled against him. But he remains unsure whether his ordeal has actually ended.
"I was unsure if the vendetta had ceased. Hence, I waited four months to see if the CBI appeals to a higher court to pursue charges," says 78 year-old Kini, who underwent three major surgeries for urological problems while the case was being tried in court.
Kini's ordeal began in 1986 when he was slapped with internal memos by then Union Bank Of India Chairman, JS Bhatnagar, for making improper advances worth crores of rupees bypassing official norms. "I replied to the memos and the matter seemed to have ended there. But Bhatnagar retired in December 1988, paving the way for me to take over as Chairman. That's when he and his coterie decided to strike, motivated by jealousy. As my file was pending clearance for appointment as Chairman, the CBI raided my house in Cuffe Parade and private residence in Chembur," Kini recalls. Both raids drew a blank.
"Due to this incident, I lost my career, credibility and reputation. Hopefully, things will change now. I am happy that my name has finally been cleared. Now, I can attend events with my head held high," he says.
Alongwith six other co-accused, Kini was acquitted of all the offences under Section 420, Section 120-B as well as charges under the Prevention of Corruption Act, Section 5(2) and Section 5(1)(D).
"It isn't unusual for people to lodge anonymous complaints against top bank executives due to vested interests. But it's surprising that the CBI fell into the trap and acted as an instrument to destroy my career," he adds.
The raid ensured that Kini was out of the reckoning for the bank Chairman's post. He was reduced to juggling his work schedule to attend the Special CBI Court in Mumbai every month for 24 years, until his retirement.
"Initially, I could manage it since I wanted to prove my innocence. But in my 60s and 70s, it became too much. I was made to sit on benches for long hours, beside hardcore criminals," he states. He hasn't received any compensation either.
Now, the man whom even Dhirubhai Ambani used to stand up in respect of, plans to dispose of his private flat in Mumbai and settle down in Chennai. "I will engage myself with charitable institutions. For me, this is the end," concludes Kini.
http://www.mid-day.com/news/2010/aug/220810-mu-kini-corruption-charges-exonerated.htm
The curious case of suspension of Indian Bank's GM
ReplyDeletehttp://economictimes.indiatimes.com/opinion/money-banking/the-curious-case-of-suspension-of-indian-banks-gm/articleshow/8673265.cms
The somewhat unusual instance of the Indian Bank chairman and managing director TM Bhasin suspending his general manager is the buzz among bankers these days. During Mr Bhasin's visit to Mumbai on May 19, GM Banabihari Panda went to receive him at the airport. After the luggage was loaded in the car, unluckily for Mr Panda, the keys got locked in the car, and Mr Bhasin had to take another vehicle.
But the matter did not end there, miffed by this incident Mr Bhasin suspended Mr Panda because he failed to provide 'minimum basic courtesy' to the CMD. But as this news became public, Mr Bhasin decided to salvage his reputation and reinstated the GM but transferred him to Chennai. A risk management officer said: "Ideally, RBI should ask Indian Bank to set aside more capital as reputation risk, which is infact one of the critical elements of Basel II!"
Speaking up
One financial regulator has received around 1,000 mails supporting Speak Asia, the Singapore-based online survey company. The mails contain a narrative from its subscribers thanking the company for giving them a source of income. Speak Asia that had collected hundreds of crores from its users by promising huge payments is being probed by various Indian authorities.
One wonders whether the emails are genuine or sent by somebody acting as a front. One challenge regulatory bodies such as Sebi, ministry of corporate affairs, economic offences wing, income-tax department are facing is how to begin the probe since the company does not have any office or licence to operate in India.
Diamond Not the Best Friend
State Bank of India, the country's largest bank, turned down the offer to buy two major global diamond banks. The bank has reached its exposure limit when it comes to financing diamonds hence the offer was not considered. Global banks involved in the diamond finance business have been going through a rough patch, following the economic slowdown.
Financial Inclusion Mirage
Financial inclusion may remain just a slogan for many years to come with the political class just unwilling to help the central bank in its mission. A case in point is a Southern state, with mining controversies, which readily agreed with the central bank last year to share details, data of population. Many calls and letters later, nothing much has happened. The inclusion agenda may remain a pipedream because of the political class, as garibi hatao is.
CBI unearths fake housing loan scam
ReplyDeletehttp://ibnlive.in.com/news/housing-loan-scam-top-lic-bank-officials-held/135758-3.html
New Delhi: The economic offences wing of the Central Bureau of Investigation on Wednesday unearthed a major fake housing loan racket and arrested eight officials from various banks on graft charges.
CBI arrested CEO of LIC Housing Finance Ramachandran Nair and seven others senior bankers in connection with a housing finance racket.
Apart from Nair, those arrested are Naresh K Chopra, Secretary (Investment), LIC, R N Tayal, General Manager of Bank of India (Delhi), Maninder Singh Johar, Director (Chartered Accountant) of Central Bank of India, Venkoba
Gujjal and Dy General Manager of Punjab National Bank (Delhi).
Rajesh Sharma, CMD of Mumbai-based firm Money Matters Ltd and two of its employees -- Suresh Gattani and Sanjay Sharma-- were among those arrested.
The bank officials allegedly colluded with the firm to sanction large scale corporate loans, overriding mandatory conditions for such approvals along with other irregularities.
These arrests, according to senior banker and HDFC chairman Deepak Parekh, reveals bribery and corruption by public officials in sanctioning home loans.
"These are cases of bribery. These are cases of corruption. Bribery by public officials, by people working in public sector organisations and facilitating and sanctioning loans by taking money", Parekh said.
"They (CBI) have zeroed in real estate sector and certain developers who must have paid money to get loans sanctioned", he said.
The CBI earlier said that it had busted a racket wherein "a private financial services company, its CMD and other associates were allegedly bribing senior officials of public sector banks and financial institutions for
facilitating large scale corporate loans."
Searches were conducted at various locations in Mumbai, Delhi, Chennai, Jaipur, Kolkata and Jalandhar, which have resulted in seizure of incriminating documents, the investigating agency said.
The agency said it registered five separate cases and that investigations were in progress.
The Finance Ministry said it would explore the possibility of instituting a departmental inquiry into the housing finance racket that led to arrest of
senior officials of the LIC Housing Finance and public sector banks.
"If there is provision (of departmental inquiry), we will set up inquiry. Otherwise banks at individual levels will set up inquiries" a senior official said here.
The official was responding to a query on the possibility of the Finance Ministry instituting an inquiry to look into the housing finance racket.
Describing the episode of arrests of bankers as incident of "bribery", the official said, it will not have any impact on the asset quality of the banks.
"We have inquired from individual banks about the asset quality and banks have said there will not be any increase in NPAs (Non-Performing Assets) due to this episode", the official said.
Searches were conducted at various locations in Mumbai, Delhi, Chennai, Jaipur, Kolkata and Jalandhar, which have resulted in seizure of incriminating documents, the investigating agency said.
The agency said it registered five separate cases and that investigations were in progress.
So should the consumers be worried?
"No," says Deepak Parekh, "there's no impact on retail loans."
News of the raids took housing finance stocks down, with LIC housing stocks plunging by 20%.
(With PTI inputs)
CBI Files Charge-Sheets In Housing Loan Scam
ReplyDeletehttp://indiacurrentaffairs.org/cbi-files-charge-sheets-in-housing-loan-scam/
CBI FILES FOUR CHARGE SHEETS IN SEPARATE CASES OF BRIBERY AGAINST THE THEN SECRETARY & CEO, BOTH OF LIC; CMD OF MUMBAI BASED FIRM; GENERAL MANAGER, BANK OF INDIA; DGM OF PUNJAB NATIONAL BANK AND OTHERS
http://cbi.nic.in/pressreleases/pr_2011-10-04-1.php
Fake Housing loan scam 8 arrested by CBI
http://updateox.com/india/fake-housing-loan-scam-8-arrested-by-cbi/