CVC seeks powers under Benami Act

8220;Most of the funds collected through corrupt means is channelled into the real estate sector8230; the CVC would like to have powers to freeze and confiscate the property to eradicate corruption,8221; Vittal said. Vittal said the Sick Industries Companies Act SICA and Board for Industrial and Financial Reconstruction BIFR should be scrapped and abolished as soon as possible in order toeliminate a part of financial sector corruption and exploitation.

8220;One of the factors which helps unscrupulous industrialists to cheat the banking system was the Sica Act and thereby institutionalise corrupt practices. Besides, banks should also make the name of those defaulters public who have cheated them of over Rs 25 lakh,8221; he said.

Explaining various actions taken by the Commission in the last 125 days of his takeover, Vittal said the current legal system and the government policies have to updated as many people are taking advantage of the loopholes. 8220;We have to address the system that causes corruption in public life,8221; he said.

Vittal said corruption flourishes because it is a low risk and high profit business. 8220;If we are able to increase the risk, then it should be possible to reduce the corruption in the system. The law commission has drafted a law called the Corrupt Public Servants Act 1999 to this regard,8221; he said.

The CVC felt that Indian must adopt the sunset principle8217; of theUnited States behind every rule and act so that these rules have a limited specific life time period at the end of which the act must lapse. Talking on the issue of corruption in banks and financial institutions, Vittal said a new chapter had been introduced in the vigilance manual effective from January 1, taking into account the need for giving suitable assurance to the honest bankers particularly in their decision making process.

Honest bank officers find that their career can be ruined by one or two procedural mistakes which may lead to a CBI raid and all the attendant negative consequences. In case of political or outside pressure in sanctioning loans, Vittal said bankers or officers in any department can now directly make complaint to the vigilance commissioner and send status report to him. Even junior bankers can initiate case against their seniors who indulge in corruption practices and send complaint letters to the commissioner, he said.

While insurance companies, SEBI and capital markets areyet to be brought under the vigilance manual, he suggested that these organisations may first pursue the chapter on the banking sector and if this would meet their requirements, the CVC can simply extend the applicability of the chapter on banking sector in vigilance manual to them also.

Various factors such as scarcity of goods and services, delay in clearances and permission, lack of information exchange related to frauds and corruption resulted from the government policy are the main reasons for increasing corruption, he said.

Simplifying procedures and making procedures with time limits for reducing delay are methods by which improvements can come, he said. The commissioner set the time limits of 30 days in ordinary cases and 60 days for the presidential appointees in sanctioning prosecutions against the corrupt or conducting departmental inquiries. The dirty environment of rules and regulations must be removed as early as possible, he added.