Vigilance Compedium - CCL

The verification of Borrower to be submitted by the Employer was also a confidential
document and it was to be transmitted to the Bank without passing through the hands of the
applicant but this system was not followed in the subject case. One outsider (resident of the
area concerned) mediated and negotiated with the Bank Officials to get the loan granted.
Loan Manager, in a letter addressed to the personnel executive of the concerned Colliery,
intimated that the loan was sanctioned to four employees of the project/colliery and requested
the project to deduct the monthly installment per month and get the same remitted to the
Bank. The said letter was also not sent through official dispatch rather it was handed over to
either the borrower himself or the mediator who mediated/negotiated the whole process of
getting the loans granted.
The signatures on the borrower verification and also the undertaking though appeared to be
signed by the personnel executive, but on verification it appeared that signatures of the said
personnel executive did not match with his signatures on other official documents.
Manager of the said Bank, in all his official letters used the designation Sr. Personnel
Manager, but there was no such designation as Sr. P.M. Thus it was revealed that the loan
granting authority had never officially communicated with the project officials and Bank had
got no authenticated signatures of the Officials forwarding the loan applications or giving the
undertaking for deduction of the monthly installments. The Bank Official was, perhaps,
completely relying upon the credibility of the mediator in the subject loans.
Recovery against the said loans from the salary of the employees had been made and
irregularity on the part of officials established .The concerned personnel executive was
suitably penalized.
Because of involvement of an outsider and requirement of help of writing experts to prove
the nexus of Colliery officials, subject file/case was forwarded to CBI for further
investigation.
For verification of the dubious role of the Bank Manager, the subject case was also sent to
CVO of the concerned Bank for verification at their end.