CVC reconstitutes advisory board on bank, financial frauds

The Central Vigilance Commission has also expressed its concern over the delay in appointing chief vigilance officers in various key organisations

The Central Vigilance Commission (CVC) has reconstituted its advisory board on bank, commercial and financial frauds, reports PTI.

The six-member board will be headed by former chief vigilance commissioner Janki Ballabh.

Vittaldas Leeladhar, ex-deputy governor, RBI; Ravi Kamal Bhargava, IAS (retired); R Srikumar, IPS (retired); Mukand Chitale, chartered accountant and V Santhanaraman, ex-executive director, Bank of Baroda, will be the members of the board for a period of two years, according to the Commission’s performance report for February this year.

The tenure of the previous Board ended in 2009.

The Commission also expressed its concern over continuing delay in filling the post of chief vigilance officers (CVOs) in Delhi Transport Corporation and other key organisations.

The CVC is deeply concerned over continuing delays in filling the post of CVOs in organisations like Delhi Transport Corporation, Hindustan Shipyard Ltd, Power Grid Corporation India Ltd, Steel Authority of India Ltd and State Trading Corporation, the report said. “The government is being regularly reminded,” the report said.

The CVC disposed of 545 cases related to alleged corruption and effected recoveries to the tune of Rs19 crore in different ministries and government-run departments.

The Commission imposed a major penalty on 76 officers besides advising prosecution against nine officers—five from the ministry of personnel, PG and pensions and one each from the Central Board of Direct Taxes, Oil and Natural Gas Corporation, Government of NCT of Delhi and the railway ministry.

The CVC has also advised imposition of major penalty in 170 cases—47 in the railway ministry, 20 from the Municipal Corporation of Delhi, 16 from Bharat Petroleum Corporation Ltd and 10 from Bharat Coking Coal Ltd among others, the report said.




MJS Murthy

7 years ago

It is high time that the concerned Departments in CBI & CVC should take lead to arrest the rot that is eating into the public sector banking system. The working style has deteriorated to such an extent, it is becoming tougher and tougher for honest officers to function in these organisations, which were created / nationalised with intentions to build up and boost the economic growth of our country.
A small example which should open the eyes of common people and intellectuals is :
One of the important reasons for rising frauds in public sector banks is giving responsibilities / posting them in key posts like Regional Heads / Zonal Heads / Key Departmental Heads at Central office / Corporate levels to unscrupulous scamsters whose track record is bad and also well known to staff & officers at grass root level. However in the bank's records maitained at apex level their records are mainpulated and shown normal.
A Regional Head in one of the public sector Banks, which stands within 7th in the ranking amongst public sector banks, at Hyderabad sanctioned Rs.6.00 crores Term Loan for construction of factory shed and purchase of new machinery + working capital. The unit was to manufacture hair oils and cosmetic soaps. The same executive was promoted to General Manager and posted as General Manager at Field General Manager's Office at Bangalore. This zone caters to AP & Karnataka. It is very rarely such top excutives are retained in the same Zone after promotion. However the top management made exception to retain him in the same zone - may be to cover up his frauds as a Head of the Zone. The account started showing signs of becoming Non Performing Asset (NPA). If an account becomes NPA within 6 months of release of limits, it attracts Vigilance angle. So this General Manager could influence the Regional Head of Hyderabad to sanction second Term Loan of Rs.5.00 lacs in the name of expansion. This TL II was mainly utilised to regularise the the TL I which was on the verge of being declared NPA / stressed account. Thus he protected himself by keeping the account in banks books as a performing asset.
'The same borrower after lapse of further 6 months was further sanctioned RS.6.00 crores Term Loan as TL III for diversification. The product to be diversified into was to manufacture vermicelli.
The account is declared NPA within 2 years of its first sanction. The basic question that comes is how Bank could sanction 3 Term Loans within a span of less than 2 years when the performance of the unit was poor. The Term Loan III was sanctioned partly to keep the account as a performing asset by part diversion of the loan amount to service the earlier term loans. This is nothing but a fraud committed by the topmost management of the Zone. The Zonal Head is now hunting for a scape goat to fix the accountability on some innocent officer and easy targets will be Branch Managers. Since the Zonal Head will have to send the accountability statement on the account, it will be easy for him to fix some one and himself escape from the accountability. This is only a tip of the ice berg. There are multiple scams he has committed but escaping from the accountability by holding some innocent officers accountable. Since I am not in a position to disclose the the details of the accounts or name of the bank at this stage, as it comes in the way of Bank's Service Regulations, I hope to bring the details at an opportune time.
Unless this type of unscrupulous elements are not eliminated from public sector banks, no qualified and efficient officer will remain in these organisations.

M J S Murthy

7 years ago

It is heartening to know that Chief Vigilance Commission has reconstituted its adivisory board on Bank, Commercial & Finance frauds by eminent personalities in their fields. Mr.V.Leeladhar himself being a Banker worked in various capacities in various Banks including RBI with a Chemical Engineering background and other experts with various backgrounds and experiences in banks and other organisations can be expected to deliver the goods to the expectations of people at various levels. I am confident under their guidance frauds that are taking place in various Banks will be under control and real fraudsters will be booked instead of innocent officers who are becoming scape goats in various frauds / irregularities that are taking place in public sector Banks.

Govt may soon withdraw duty sop on cotton yarn exports

In a bid to drop prices in the domestic market, an export duty may also be imposed

The government may soon withdraw the 4% incentive on cotton yarn exports aimed at cooling its prices in the domestic market.

“The 4% duty benefit to yarn exporters under the duty drawback scheme is likely to be withdrawn soon,” a source told PTI, adding that the government was also considering to impose export duty on cotton yarn.

On 21st April, another export sop on yarn known as the Duty Entitlement Pass Book (DEPB) scheme was withdrawn.

Besides, yarn exporters have been asked to register their dispatches with the textile commissioner. Exporters can avail incentives either under the DEPB or the duty drawback scheme.

With cotton and yarn prices moving upwards, textiles minister Dayanidhi Maran is understood to have met finance minister Pranab Mukherjee on 21st April.

On 6th April, an inter-ministerial meeting chaired by the finance minister had discussed ways to check cotton and yarn prices.

Cotton yarn prices have jumped by over 30% in the past three months.


Oil mixed in Asian trade

Unexpected increase in US crude & product stocks weighed down markets

Oil prices were mixed in Asian trade today as sagging demand in the United States, the world’s largest energy-consuming nation, limited the market’s gains, analysts said, reports PTI.

New York’s main contract, light sweet crude for delivery in June, was up five cents to $83.75 a barrel. Brent North Sea crude for June fell two cents to $85.65.

The market was weighed down by a report on Wednesday from the US Department of Energy (DoE) which showed an unexpected increase in crude and product stocks, analysts said.

The rise indicates weaker demand as the world’s biggest economy struggles to recover from its worst economic downturn since the 1930s.

“It does put some doubt on the fact that the market won’t move back into balance,” said Ben Westmore, minerals and energy economist for the National Australia Bank in Melbourne.

“It’s arguable whether (oil above $80 a barrel) is really justified given the very weak fundamentals,” he added.

The DoE announced on Wednesday that US crude reserves increased 1.9 million barrels in the week ending 16th April. This was against market expectations of a drop of 200,000 barrels.

Gasoline or petrol stockpiles also soared 3.6 million barrels, exceeding forecasts of a small gain of 300,000 barrels.

Distillates, which include diesel and heating fuel, rose 2.1 million barrels whereas analysts had expected an increase of 900,000 barrels.


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