New Delhi, May 8, 2018

In recent months, many frauds in the banking sector, including those involving diamantaire Nirav Modi have come to light

Government is contemplating action against top officials of various banks whose names have cropped up in the investigation reports of various agencies, according to official sources.

In recent months, many frauds in the banking sector, including those involving diamantaire Nirav Modi and his firms, Rotomac Pens, Dwarka Das Seth International, and Aircel, have come to light.

Many such cases are being probed by multiple agencies, including the CBI and the ED.

Sources said some action should be taken against top officials of banks whose names have appeared in the investigative reports of probe agencies with regard to frauds.

In the case of the nearly Rs 130 billion (Rs 13,000 crore) scam perpetrated by Nirav Modi, Punjab National Bank has suspended more than two dozen officials for their alleged involvement.

In the case of Rotomac Pens fraud matter also, official of various banks are alleged to be involved.

Recently, the CBI booked top officials of two public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and companies controlled by him in connection with a Rs 6 billion (Rs 600-crore) loan fraud.

The CBI has named 15 bank officials who worked at senior levels at IDBI Bank in 2010 and 2014 when loans were sanctioned to the companies controlled by Sivasankaran in its FIR registered on a complaint from the Central Vigilance Commission.

[The Business Standard]