The Indian Banks’ Association (IBA) has expressed concern over the spate of chargesheets and arrest of bankers and held a meeting on Friday to discuss the matter.
According to an Economic Times report, the IBA has termed the work of the investigative agencies as ‘high-handed’, adding that slapping criminal cases on bankers for sanctioning loans was ‘silly’.
“We have already taken up the matter with the department of financial services in Delhi and the Maharashtra government here. Both claim ignorance about why these arrests happened and have promised all cooperation,” IBA told the daily.
The meeting comes after the Economic Offences Wing arrested a Bank of Maharashtra official and five others on June 20 for their alleged role in the DSK fraud case.
Mentioning the reason for arrests of these six persons, deputy commissioner of police (EOW) Sudhir Hiremath said, "These bank officials colluded with the officials of DSK company officials to sanction and disburse the amount to DSK group by misusing their power with fraudulent intention." Police have slapped the chargers of cheating under section 420, criminal conspiracy under section 120 (B) and other relevant sections of Indian Penal Code as well as the sections of Prevention of Corruption Act.
The five were produced in Pune court on Wednesday, and while seeking their police custody, EOW said the officials did not follow guidelines set by the Reserve Bank of India while sanctioning loans and disbursing part of the loan amount to the DSK Group.
The officials also told the court that while the disbursed amount was to be used for the sanctioned project only, the officials never verified its usage. The court remanded the arrested to police custody till June 27.
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