The Central Bureau of Investigation is examining whether there has been any irregularity on the part of the Selection Committee members in connection with the previous appointments of Chairman-cum-Managing Directors (CMD) of nationalised banks.
According to a senior CBI official, the probe has been initiated under the > Syndicate Bank bribery case, in which the bank’s CMD, S.K. Jain, was arrested a few days ago for allegedly demanding and receiving bribes from Bhushan Steel and Prakash Industries to restructure loans or extend credit limit.
“We are examining the selection rules to find out if there were any deviations. The role of the then Finance Ministry officials concerned will also have to be looked into. There are indications that in some cases, the set procedure was not followed in letter and spirit,” said the official.
The agency has launched simultaneous investigations into the suspected involvement of senior functionaries in other banks that sanctioned loans to the private parties, which later defaulted on repayments.
