Question : DIVERSION OF MONEY BORROWED FROM BANKS



(a) whether the Government is considering insertions of a separate clause in the Indian Penal Code treating siphoning off money or diversion of money borrowed from banks as a criminal offence;

(b) whether the Government has been prompted on such a move by the recommendations of SS Kohli Committee and Mitra Committee on legal aspects of fraud involving funds borrowed from bank;

(c) whether the Khandeiwal Committee set up by Indian Banks Association has opined against amending the I PC; and

(d) if so, the reaction of the Government thereon?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PAUUMIMANICKAM):

(a) to (d) The information is being collected and will be laid on the Table of the House to the extent available.