Citizens' Issues
CBI plans special court for bank, securities fraud cases

BS&F Cell of the CBI plans to have two-three of the proposed 71 additional special exclusive courts to deal with cases related to bank frauds and securities frauds

Keeping in mind the growing increase in the number of securities and bank frauds, the Bank Security and Frauds Cell (BS&FC) of the Central Bureau of Investigation (CBI) is keen to have two to three special, exclusive courts to deal with such cases.

Last week, CBI director Ashwani Kumar announced setting up of 71 additional exclusive courts for CBI across the country. The premier investigation agency currently has 49 courts. Out of these 71 courts, authorities from BS&FC have requested around two to three special, exclusive courts to solve cases related with financial matters.

During 2008-2009, cases related with bank fraud increased 128% to 23,917 to Rs1,883 crore from 10,450 cases amounting to Rs779 crore recorded in 2004-2005, according to a data released by the CBI.

In a presentation made on bank fraud cases, Mahipal Yadav, superintendent of police (SP), BS&FC, CBI, said, "We have requested to be given two to three of these exclusive courts for redressing BSFC related cases."

BSFC is a zone that exclusively deals with cases of securities and bank frauds. These courts may be set up in three cities - Mumbai, Ahmedabad and Bangalore.

The CBI official in his presentation also stated, "CBI has registered 60 cases of bank frauds in the past 18 months since 1 January 2009 involving Rs9.11 billion, while investigation is pending in 39 cases involving Rs7 billion.

Out of the additional 71 courts proposed - six would be set up in Maharashtra comprising three in Mumbai and one each at Amravati, Pune and Nagpur. These exclusive courts are expected to hold day-to-day trial and avoid unnecessary adjournments.

"CBI sent a proposal for creation of additional courts of special judges to the government of India. The Indian government has accepted the proposal. The prime minister has taken up the matter with the concerned chief ministers for creation of additional courts in their respective states and also with the concerned chief secretaries of states. It will be our endeavour to make these CBI courts functional by the end of this year- 2010," said the CBI director.




6 years ago

good articals


6 years ago

It is nice to hear about special courts to handle fraud cases. However it is not clear why nothing is being done to recover the hard earned money swallowed by so called finance companies like GNS Nidhi though this hapened in 1997. Can we expect action in such cases also?

TP Viswanathan

6 years ago

What if the powers that be do not allow the matter to escalate upto CBI? In 2004 a leading Urban Co-op Bank was plundered by ambitious directors and their stooges. In one case a whopping Rs.40+ crore was granted against a security of just Rs.5 crore. The bank wet fut and at the behest of RBI, EOW filed criminal case against the accused. The scam was worth over Rs.130 crore. The matter is still in cold storage. The affected depositors have not been paid back their full deposits so far. The bank which took over the failed bank is enjoying at the sweat and blood of the hapless depositors.

Bankers confident of clocking 20% credit growth

The government has set a growth target of 20% for the banks, both in credit and deposit segments, in the current fiscal. Last fiscal, banks had overshot the 16% target and had ended the year with 16.5% growth

Bankers today informed the Reserve Bank of India (RBI) that they are confident of achieving 20% credit growth this fiscal, on the back of a strong revival in credit demand due to the economic recovery, reports PTI.

"With all the available parameters there, it (credit growth) will be definitely better than last year," State Bank of India (SBI) chairman OP Bhatt told reporters in Mumbai adding a 20% growth looks attainable as of now.

The government has set a growth target of 20% for the banks both in credit and deposit segments in the current fiscal. Last fiscal, banks had overshot the 16% target set by RBI and had ended the year with 16.5% growth.

Mr Bhatt said credit growth has already started picking up and once the demand escalates further, there would be pressure on banks to garner more deposits by hiking deposit rates.

"Once credit demand escalates, there will be a pressure on deposit rates to go up," Mr Bhatt said, adding SBI, however, would wait for policy cues from RBI on 27th July prior to effecting any changes on its interest rates.

Stating that the current liquidity crunch is likely to ease by the end of the month, Mr Bhatt said, "Liquidity is already improving. By the end of July and going forward to August, liquidity is expected to be comfortable."

Mr Bhatt was talking to reporters after the bankers' customary meeting with the apex bank top brass prior to the monetary policy review scheduled later this month. The central bank is widely expected to hike its overnight lending and borrowing rates -repo and reverse repo - by another 0.25% to check double-digit inflation. It had surprised the markets by hiking the repo and reverse repo rates by 25 basis points (bps) late last month.

RBI deputy governor Subir Gokarn met senior bankers, including Canara Bank chairman and managing director AC Mahajan, Axis Bank managing director and chief executive officer Shikha Sharma, Bank of Baroda chairman MD and managing director Mallya and Bank of India chairman and managing director Alok Misra, amongst others.

According to Mr Bhatt, the Reserve Bank is likely to soon announce a sunset clause with a deadline of 30 June, 2011, for all loans in the erstwhile benchmark prime lending rate (BPLR) system to migrate to the new base-rate model.

Banks had approached the RBI for such a clause for all BPLR-linked loans, which, otherwise, would force them to administer two types of benchmarks - base rate and BPLR - for many years in case a borrower refuses to switch to the new benchmark rate.

"Yes, they are going to announce (the decision on sunset clause)...the RBI is currently examining the clause (with a deadline of) one year...that is by 30th June next," Mr Bhatt said.


Daily Market View: In continued uptrend

Subject to minor declines, market may be headed for a new intermediate high

The market in the green for the third day in a row on positive Asian markets; however, lower-than-expected industrial growth limited the gain. The Sensex settled at 17,937, up 103 points (0.6%) and the Nifty stood at 5,383, up 30 points (0.6%). The indices started the day with support from their Asian counterparts. The market pared off some gain in the mid morning session following the announcement of the industrial output numbers. In the early afternoon session it recovered to limit some of the losses.

Asian markets were up on the positive sentiment of Wall Street's best weekly performance in a year on Friday, 9th July. Strong Chinese export data for the month of June also supported the upmove. Key benchmark indices in Hong Kong, Singapore, Indonesia, China, and South Korea were up 0.01% to 0.8%. However, Japan's Nikkei 225 was down 0.4% in volatile trade after the government lost an upper house election over the weekend.

Wall Street closed at its best week in a year on Friday. The Dow was up 59 points (0.58%) at 10,198. The S&P 500 was up 7.7 points (0.7%) at 1,078. The Nasdaq was up 21points (0.9%) at 2,196.

Industrial output, as measured by the Index of Industrial Production (IIP), in May was up at a slower-than-expected 11.5% from a year earlier, government data showed on Monday. Manufacturing output rose an annual 12.3%, the statistics office said. Mining output was up 8.7% and power generation rose 6.4%. Production of capital goods rose 34.3% year-on-year after an annual rise of 72.8% in April 2010, while consumer durables output grew 23.7%, down from a 37% rise in the previous month. Analysts opine that IIP for the second half of the calendar year 2010 will slow down to 6%-9% and end the fiscal 2010-11 with an average growth of around 9%.

The steel ministry wants a ban on the iron exports as they are non-renewable. India produced about 230 million tonnes of iron ore in the last fiscal, of which around 106 million tonnes were exported, mainly to China. This was announced by the ministry after the Karnataka government wrote a letter for banning iron ore export.

The Reserve Bank of India (RBI) is likely to soon announce a sunset clause with a deadline of 30 June, 2011 for all loans in the erstwhile benchmark prime lending rate (BPLR) system to migrate to the new base-rate model.

Foreign institutional investors were net buyers of equities worth Rs1,104 crore on Friday. Domestic institutional investors were net buyers of Rs39 crore on the same day.

Bhilwara Energy Ltd (BEL), a LNJ Bhilwara group company, plans to dilute 10.8% stake to two foreign investors as part of its plans to fund its power projects. BEL has agreed to disinvest holdings to Washington's IFC and India Clean Energy Fund for $50 million ($25 million each) or Rs230 crore. RSWM (up 6.1%) is one of the promoters of Bhilwara Energy and currently holds 19.5% in the company. 

The board of Treadsdirect (down 2.5%) has decided to restructure the company business with effect from 1 April, 2010 through a composite scheme of arrangement by amalgamating the company along with Elgi Rubber Company Ltd into Elgi Rubber International Ltd, a company which will eventually be listed on the NSE. The board has also decided to demerge certain divisions of the company to Treadsdirect (India) Ltd, which will become a wholly-owned subsidiary company of Elgi Rubber International. 

Amrit Corp (up 1.4%) informs that the promoters of the company are restructuring their shareholding in ABC Paper Ltd, pursuant to which, 22,99,900 equity shares of Rs10 of ABC Paper are proposed to be transferred to co-promoter, Esteem Finvest Ltd, at a premium to the market price.




6 years ago

thanks for yours valuable information
provided by you

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)