CBI awaits sanctions for prosecution in 14 big public sector banking fraud cases

NEW DELHI: The Central Bureau of Investigation ( CBI) is awaiting prosecution sanctions in 14 cases of big-ticket public sector banking fraud, where loss to exchequer is estimated to be Rs 1,000 crore, even as it plans to expand investigations against Vijay Mallya.

Central Vigilance Commission data names State Bank of India, Exim Bank, Bank of Baroda and State Bank of Patiala, among others. The anti-corruption watchdog has made it mandatory for government departments to deny or grant sanction to prosecute corrupt officials within three months. However, records accessed by ET show some sanctions pending for more than a year now.

In January 2016, the CVC also recommended a major penalty — reduction of pay for two years — against 59 officials from UCO bank, State Bank of Travancore and Union Bank of India for dereliction of duty.

According to CVC, prosecution sanction is awaited against chief managers, general managers, relation managers and assistant general managers and of the 32 pending cases, 11are related to frauds. Vigilance officials said banks have sanctioned prosecution against eight officers in January — four at Bank of Baroda, three at Syndicate Bank and one at UCO Bank.

Last year, CBI had filed a chargesheet against former Syndicate Bank CMD SK Jain, accused of receiving Rs 50 lakh bribe via conduits and abusing his official position to enhance credit limits of some companies.

According to CVC guidelines, only frauds of more than Rs 3 crore where banks find prima facie involvement of their employee go to the CBI’s anti-corruption wing. If the employee’s role is not evident, the matter will be investigated by the economic offences wing.