1. CVC tells CBI to share details of big ticket frauds with ED

CVC tells CBI to share details of big ticket frauds with ED

The Central Bureau of Investigation has been asked by the CVC to share details on big ticket frauds with the Enforcement Directorate so that the provisions of anti-money laundering Act can be invoked at the stage of investigation itself.

By: | New Delhi | Published: August 25, 2016 3:20 PM
The Central Vigilance Commission (CVC) exercises superintendence over the working of CBI in corruption cases.The decision comes as there have been cases of corporate frauds involving crores of rupees. (Source: PTI)

The Central Bureau of Investigation has been asked by the CVC to share details on big ticket frauds with the Enforcement Directorate so that the provisions of anti-money laundering Act can be invoked at the stage of investigation itself.

The Central Vigilance Commission (CVC) exercises superintendence over the working of CBI in corruption cases.The decision comes as there have been cases of corporate frauds involving crores of rupees.

The CVC has asked CBI to share relevant details on big ticket frauds with the ED so that provisions of Prevention of Money Laundering Act can be invoked at the stage of investigation itself, officials said today.

They said it will help in taking stringent action against the fraudsters during the investigation stage itself.

There has been cases where ED is roped in at later stage by the CBI and at times, it results in losing out crucial leads and also cause delay in punishing the accused or trace money laundered by them, the sources said, adding that the CBI has started sharing relevant details with the ED.

In a related development, the CBI has also been made the nodal authority for public sector banks to report high value frauds worth over Rs 50 crore.

A Joint Director level officer has been authorised in the CBI to receive complaints of the frauds from the banks. After receiving such reports, the officer can recommend investigation by any of the agency’s wings (Anti Corruption, Economic Offences or Bank Security and Fraud Cell).

The Chief Vigilance Officers, who act as distant arm of Central Vigilance Commission (CVC) to check corruption, of banks have been asked to act as nodal officers to coordinate in reporting such cases to the CBI.

A total of 171 bank fraud cases involving funds of over Rs 20,000 crore were probed by the CBI last year.

One of the high-profile bank fraud cases being probed by the CBI and ED is of liquor baron Vijay Mallya involving an amount of over Rs 9,000 crore.

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