NEW DELHI, JUN 26 : The Central Bureau of Investigation (CBI) has raised concerns over delays in obtaining mandatory sanctions to investigate and prosecute bank officials in corruption and bank fraud cases, saying the issue is affecting the pace of investigations and legal proceedings.
The matter was discussed during a meeting held on Thursday between senior CBI officials, the Secretary of the Department of Financial Services, senior Finance Ministry officials, representatives of public sector banks, and Chief Vigilance Officers (CVOs).
According to the CBI, in several cases banks have denied sanction to prosecute their officials, resulting in the loss of approval under the Prevention of Corruption Act. Consequently, such cases are shifted from special anti-corruption courts to regular courts, impacting prosecution.
Under the Prevention of Corruption Act, the CBI is required to obtain prior approval under Section 17A before initiating a criminal investigation and sanction under Section 19 before prosecuting a public servant.
The agency also highlighted delays by banks in providing documents required for investigating bank fraud cases.
A CBI spokesperson said discussions during the day-long meeting focused on issues including approvals under Sections 17A and 19 of the Prevention of Corruption Act, pending documents, bank fraud complaints, one-time settlement (OTS) matters, recent court rulings, and mule account-related issues.
Senior CBI officials also held bank-wise discussions with Chief Vigilance Officers to address pending matters, with the agency stating that most issues were resolved during the meeting.
The CBI emphasised the need for timely sharing of documents by banks and proactive cooperation in securing approvals and prosecution sanctions to expedite investigations.
The meeting concluded with a consensus to strengthen coordination between the CBI and public sector banks to ensure faster and more effective handling of bank fraud cases.
