Punjab: HC seeks Centre, CBI's response to petition against agency's jurisdiction over bank scams
Chandigarh, September 17: A petition challenging the jurisdiction of the Central Bureau of Investigation (CBI) over the scams in the banking sector has been filed in the Punjab and Haryana High Court.
The High Court has sent a notice to the CBI, RBI and Central Government, seeking their response on the matter.
Notably, the Central Vigilance Commission increased the threshold to Rs 3 crore from Rs 1 crore for fraud cases to be reported to CBI by public sector banks, in 2012.
According to the 2012 circular, fraud involving at least Rs 3 crore and up to Rs 15 crore must be reported to the CBI's Anti-Corruption Branch, if staff involvement is prima facie clear and Economic Offences Wing if staff involvement is not prima facie evident.
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The petitioner who challenged the 2012 circular stated that the CBI cannot probe any banking sector scams and that if they are to be investigated, this act must first be amended in Parliament.
According to the CBI circular, the agency can investigate banking scams if the bank files a written report. The petitioner claims that such matters are under the jurisdiction of state police and that the CBI has no authority to investigate them.
Currently, the CBI can only initiate an investigation if the state government writes to the federal agency, a High Court order is issued, or an officer is arrested in violation of the Prevention of Corruption Act.
The High Court will now hear the matter of the CBI's territorial jurisdiction, which could affect hundreds of cases in Punjab, Haryana and Chandigarh.
The next hearing in the matter will be in January. In the meantime, the CBI, the RBI, and the Central Government will submit their responses to High Court.
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-PTC News
