CBI STUDYING CVC REPORT ON CORPORATION BANK

The Central Bureau of Investigation (CBI) is examining a report prepared by the Central Vigilance Commission (CVC) on the alleged irregularities in the sanction of loans and tender procedures by Mangalore-based public sector Corporation Bank, a source said.

The CVC had forwarded its report to CBI a week ago. Speaking to IANS on the telephone from Delhi, a CBI source said: "The reference was made to CBI by CVC a week back. The report is being studied."

According to him, the agency will verify the findings stated in the report and if there is credible evidence, then a case will be registered and investigations would begin.

Perhaps for the first time in India's banking history, the CVC has conducted a probe based on a whistleblower's complaint about alleged irregularities in sanction of loans and issuance of tenders at the Corporation Bank.

A two-member team from the CVC camped at Corporation Bank's headquarters May 9-14 to probe the complaint and senior bank officials deposed before it, sources told IANS.

The inquiry was held under Sections 8 and 11 of the CVC Act. Section 11 confers inquiry team the power of a civil court in respect of summoning and enforcing attendance of a person, production of documents and receiving evidence on affidavits, among others.

The CVC had earlier sent the probe report to the department of financial services under the finance ministry. CVC officials declined to comment on the development and e-mails sent to them remain unacknowledged.

Last month, the CVC had asked the bank not to issue or award tenders for appointment of technical, management consultants on retainer basis or for expanding the bank's insurance, wealth and asset management business, due to violations of norms.

SOURCE: http://articles.economictimes.indiatimes.com/2011-07-28/news/29824919_1_cvc-report-cvc-act-cvc-officials