Roughly 50% of the complaints of some 17,000 received by the Central Vigilance Commission (CVC) in 2011 were regarding railway officials, reports Rajat Arora in New Delhi. In the following year, when as many as 29,000 complaints were lodged with the CVC, those concerning the railways did far outnumber the allegations levelled against any other department. Railway graft allegations are not restricted to any department or category of officials, but pervades all levels, and a large number of them pertain to procurement practices.
Cobrapost claimed the RBI and investigating agencies aren’t acting against the wrongdoers, fearing it would lead to systemic problems and affect investor sentiments.
Takru said following the ministry's intervention, public sector banks have already started taking action and some of the employees allegedly involved in the malpractices have been already suspended. “Some employees named in the expose have been suspended. Others will soon be placed under suspension. Those found guilty of lesser offences will be divested of their duties. We are making transcripts of the entire expose, and we are on the job,” he said. The Indian Banks' Association has also been asked to look into the matter, he added.
The RBI and finance ministry officials had recently held discussions after the release of the first part of the expose, after the regulator had found systemic failure during a probe following the expose.
The RBI – which said that the banking system is “largely safe” – had also assured action at the systemic level and against the individual banks found guilty, as well as corrective steps to prevent such illegal acts.
Insurance regulator IRDA on Monday said it was examining allegations of money laundering levelled against insurance companies.
“The insurance companies concerned have been asked to file reports on the allegations. The matter is under examination and appropriate action will be taken at the earliest,” the regulator said in a release.
State Bank of India chairman Pratip Chaudhuri said the bank would probe the allegations and severely punish if any officials were found guilty. “So far, it does not indicate if KYC (know your customer) violations have been