Finance minister Nirmala Sitharaman says banks and CBI to discuss fraud investigation framework

The minister said that when a bank spots suspicious activity for amounts greater than Rs 3 crore, it has an internal committee which decides whether it should forward the case to the CBI.

Further, she said that notices sent to the banks by the CBI will have a Document Identification Number (DIN) to avoid any scope for unauthorised communication and consequent harassment, and instructed that lenders should not sit on cases which can be handled through departmental action.

Sitharaman said that she will hold meetings with the Enforcement Directorate, Directorate of Revenue Intelligence, Income Tax Department and Customs officials so that such concerns are addressed.

Earlier, public sector banks (PSB) have raised concerns over witch-hunting by the investigative agencies. Recently, former managing director of Maruti Udyog Jagdish Khattar, who was booked by CBI for alleged bank loan fraud of Rs 110 crore involving his venture Carnation Auto India Limited, has vehemently denied all charges and said that it was a bona fide business failure.