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Banks seek foolproof shield against probes
August 10, 2022
Under the extant norms, the Lokpal may order a preliminary probe by its investigation arm after receiving a complaint or refer the case to an agency, including the CBI, if it finds a prima facie case.
Lenders, under the aegis of the Indian Banks’ Association (IBA), are pushing for the inclusion of provisions along the lines of Sections 17 A and 19 of the Prevention of Corruption Act (PCA) in the Lokpal Act as well, the sources said. The idea is to seek greater protection against arbitrary action by police or other authorities for honest business errors.
According to Section 17A of the PCA, any police investigation on decisions taken by public servants, while discharging their duties, will require prior approval from the competent authority. Similarly, Section 19 of the PCA mandates previous sanction from the competent authority for prosecution of offences committed by them.
“The IBA is in talks with the department of financial services for changes in the Lokpal Act,” said one of the sources.
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