Sanction delays hamper bank fraud probes: CBI

he CBI has highlighted delays in obtaining required sanctions to initiate investigations and file charges against bank officials in corruption and fraud cases, noting that these delays hinder both investigation and prosecution.
This issue was discussed at a meeting on Thursday attended by senior CBI officers, the Secretary of the Department of Financial Services, senior Finance Ministry officials, bank representatives, and Chief Vigilance Officers. The CBI reported that in several cases, banks have denied sanction to prosecute their officials. As a result, cases lose approval under the Prevention of Corruption Act and are transferred from special courts to regular courts. The CBI must seek sanction under Section 17A of the Prevention of Corruption Act before initiating a criminal investigation and under Section 19 of the Act before prosecution. 

The CBI also raised concerns about banks’ delays in providing documents in fraud cases, stating that these delays impede investigative progress.
“During the day-long meeting, participants discussed several topics, including prior approval under Section 17A of the PC Act, prosecution sanctions under Section 19, pending documents, bank fraud complaints, one-time settlement issues, recent court rulings, and mule account concerns. The agenda focused on improving interdepartmental cooperation and expediting bank fraud investigations,” a CBI spokesperson said. Senior CBI officers held bank-specific discussions with CVOs to address pending issues, and the agency stated that most concerns were resolved.

“Close coordination. “The meeting acknowledged the importance of timely document sharing between banks and the CBI. Participants also emphasised streamlining procedures and ensuring proactive cooperation in obtaining approvals and sanctions for prosecution under Sections 17A and 19 of the Prevention of Corruption Act,” the spokesperson said. The meeting concluded with a consensus to maintain the current momentum of cooperation between CBI and public sector banks, she said.