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Pradeep Thakur I TNN

New Delhi: The Central Vig

ilance Commission (CVC)has
urged PSU bank chiefs to seek
the CBI's clearance before go
ing in for one-time settlement
or write-off of bad loans. This
was conveyed to the CMDs of
six public se ctor banks at a
high-level meeting the com
mission convened recently.
The CBI director was also
present at the meetina,
The meeting was called in
view of some of the CBI's cor
ruption cases fallin g in courts
after banks reached out-of-court
deals with individuals and cor
porates through one -time set
tlement. In seve ral cases of al
leged "wilful defaults", CBI had
levelled cheatin g an d conspir
acy charges aga inst accused,
including bank er s, sources
said. The meeting held last
month was attended by CMDs
of Punjab National Bank, State
Bank of Ind ia, Bank of India,
Bank of Baroda, Union Bank
and Canara Bank, besides CBI
director Ashwani Kumar:
Sources said the bank chiefs
were told to rationalise th e ono
time settlement instrument and
redraw the list of their evalu
ators comprising lawyers and
property evaluators. Some cas

In cases of alleged
'wilful defaults', CBI
had levelled cheating
charges against accused,
induding bankers
Some cases brought to
the notice of the commis
sion related to wrong val
uation made by experts
appointed by the banks
le CVC, said sources,
felt that the autonomy to
bankers is often misused
es brought to the notice of the
commission relate r to wrong
valuation made by th ese ex
perts appointed by th e banks.
In one such case in Patna, a
PSU bank auctioned a mort
gaged property at 20% of the
valuation made by its experts.
Investigation later revealed an
alleged conspiracy involving
bank officials, evaluators and
the customer as the property
mortgaged was agricultural
land used as security against a
conunercial loan. Once banks
go in for one-time settlement,
th e offence of cheating s tan ds
compo unded . The CVC, said
sources, felt the autonomy to
bankers is often misused. Bank
officials in many cases don 't

take into account personal ass

ets of entities that had defra
uded banks. In many instances,
banks have even given loans to
the same Individual or compa
ny for the second time without
recovering the past dues.
T le settl emen t reached by
banks with the alleged "wilful
defaul ers" compromises the
civil liabilities of accused fac
ing CBI prosecution in courts.
in some recent cases, the inve
s .gat ing agency received a lot
of Oak from courts which
observed that s ince banks have
reac hed a s . ement , there was
no case a nd hence no corrup
tion. The CMDs have given an
assurance on sens itising staff
while going in for settlements.