New Delhi: The Central Vigilance Commission, an anti-corruption body, has successfully complete a first-of-its-kind analysis of all the top 100 banking frauds. The analysis included the sectors of jewellery and aviation sector frauds and the whole report of its findings with the RBI, the Enforcement Directorate and the CBI, Vigilance Commissioner TM Bhasin said today.

The analysis looked for the methods used in those frauds, total amount value of the fraud, kind of lending (consortium or individual) anomalies observed and loopholes that led to the frauds. It also advised with its recommendations to plug the gaps in the system.

All the fraud cases were classified and analysed under 13 sectors, which included gem and jewellery, manufacturing and industry, media, agro, discounting of cheques, aviation, among others.

Mr. Bhasin further said that the methods that were utilized by the fraudsters in all these 100 big loan fraud cases have been thoroughly analysed and loopholes have been identified.

“Based on the findings, various industry specific suggestions for systemic improvement have been given in the final report, which have also been sent to the Department of Financial Services and RBI (Reserve Bank of India), in order to plug the loopholes observed by the Commission,” he said.

Mr. Bhasin said that all those findings have been shared with the ED and the CBI.

Among the measures that were suggested, include strengthening of standard operating procedures and the monitoring system and also bringing to the notice the role controlling offices play, Mr. Bhasin said.

The step taken assumes significance in the backdrop of high-profile bank fraud cases reported recently that involved billionaire Nirav Modi and liquor baron Vijay Mallya, among others.

The report was also shared with the Ministry of Corporate Affairs, and this time it carried analysis of large-value frauds reported since March 31, 2017.

Further going into the details of the analysis, Mr. Bhasin said that this analytical study was inititated by the CVC as a preventive measure to minimize loan frauds incidents.

“The RBI has also confirmed to the commission that inputs given by the CVC are very useful and shall be used for systemic improvements to mitigate the risks,” he said.

There have been some very big frauds recently in the country. The most noticeable among all are the two frauds done by Vijay Mallya and Nirav Modi. Both of them cheated public sector banks by siphoning off large amounts of money.

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