Question : CORRUPTION IN PNB

(a) whether Central Bureau of Investigation has made any investigation of some corruption cases where top level officers of Punjab National Bank were involved;

(b) if so, the present status of this investigation;

(c) whether any enquiry conducted by Vigilance Department of Banking Division of Ministry of Finance;

(d) if so, the details thereof alongwith the amount involved in such cases;

(e) if not, the reasons therefor; and

(f) the action taken by the Government to prevent such forgery of crores of rupees where Top Level Officials are involved?

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

(a) & (b) Central Bureau of Investigation (CBI) has informed that it has conducted investigation in three cases against the officers of Punjab National Bank (PNB) of the level of Regional Manager and above since 2002. Chargesheet has been filed in one case, investigation is in progress in another and prosecution could not be launched in the third case in the absence of clinching evidence.

(c), (d) & (e) Vigilance Section of Banking Division has not conducted any inquiry in these cases. Normally, inquiries in such cases are conducted by the specialized agencies like CBI on the basis of complaints received or on the basis of source information.

(f) RBI as a part of its supervisory responsibility has been advising banks from time to time about the common fraud prone areas and the measures to be taken by them to prevent/reduce the incidence of frauds in banks