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| Q&A: Ashwani Kumar, Director, CBI | | 'A whistle-blower policy is a must' |
| Sanjay Jog / Mumbai Jul 25, 2010, 00:45 IST |
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 Ashwani Kumar, chief of the Central Bureau of Investigation (CBI), tells Sanjay Jog it is fully equipped to deal with economic and corporate offences, as in the Satyam case. Edited excerpts:
Was the Satyam case one of its kind?
It was, in that the promoters and a select group of employees had undertaken creative accounting, whereby fake invoices were generated and after a gap, sales were shown as realised and funds shown as deposited with Bank of Baroda in New York. Simultaneously, the amounts were shown as transferred to various banks in India and FDs (fixed deposits) being created. They then showed interest accruing on these FDs. Having shown the interest on FDs, TDS (tax deducted at source) was shown.
We formed a team of forensic experts, auditors, bank officers, cyber crime specialists and documents examiners, in addition to the police officers. This case is one where accounts were manipulated to rig the performance and, consequently, the share price of the company. Criminal liability here is fixed solely on the basis of legally admissible evidence.
Is CBI equipped to investigate economic crimes such as big bank frauds, capital market manipulations, internet protocol crime, money laundering and technology-driven ones such as hacking?
We’ve investigated the Haridas Mundra scam, the securities scam around Harshad Mehta, the case related to the Ketan Parikh group, the Indian Bank scam, the fake stamp paper scam, the Nafed cases and the Dinesh Dalmia group case. The fake stamp case, organised by A K Telgi’s crime syndicate, was a major one: we handled 67 related cases. We established that Telgi was heading an organised syndicate responsible for printing and circulation of fake stamps and stamp papers, seizing Rs 3,000 crore worth of stamp papers. CBI is fully equipped to investigate the present economic crimes.
These offences are committed in anticipation of large profits due to non-implementation of measures like a thorough scrutiny by regulators and strong punishment for offenders. Therefore, having a compulsory whistle-blower policy is the requirement.
Are the Indian Penal Code and Criminal Procedure Code inadequate to deal with such new economic and corporate crimes?
To some extent, yes, as there are certain limitations such as the confessional statement of the accused not allowed to be used in the trial against the co-accused. The chargesheet in economic offence cases cannot be completed within 60 days and so, the accused can claim bail as a matter of right. The sentence provided under the IPC for such offences is not in conformity with the gravity of the offence. Very few provisions act as a deterrent to the economic offender.
Moreover, witnesses in economic offence cases are generally well-educated, who should be legally mandated to put their signatures upon statements. At present, statements signed by witnesses are inadmissible as evidence.
The trial process is very slow and the need is for trial through fast-track courts within two years. Under the present law, the process of attachment of the property generated from the proceeds of economic offenders is very cumbersome. A lot of time is consumed in getting provisional attachment from the district courts and then getting it finalised at the time of conviction from the trial courts.
What have you done for speedy trials?
Creation of 71 exclusive courts is an epoch-making event. We sent a proposal for creation of additional courts of special judges and the Government of India accepted it. The PM has taken up the matter with the chief ministers and chief secretaries of states. It will be our endeavour to make these CBI courts functional by the end of this year. CBI is adhering to a norm of 50 cases for each prosecuting officer and a team will be constituted to assist all CBI Prosecutors. These courts will function as model courts and will try to dispose of cases within two years from the date of filing the chargesheet.
Has CBI introduced innovative practices in its functioning?
We have introduced the concept of multi-disciplinary investigation teams in solving complicated cases, where apart from police officers, law, bank officers, chartered accountants, cost and works accountants and forensic experts are associated in investigation work. We have to assimilate new technology to stay a step ahead of the criminals. Modern scientific tools, such as DNA fingerprinting techniques, voice recognition and face recognition; algorithms for search of data bases and new encryption techniques have given a tremendous edge to our fight against crime. We are also upgrading our skills through constant training. The CBI Academy has been fully equipped to undertake this responsibility.
There has always been a debate whether CBI is an extended wing of the Prime Minister’s Office and works under pressure. Has the time arrived to make CBI autonomous?
Over the years, the CBI has emerged as a premier investigating agency, which enjoys the trust of the people. Recently, the Prime Minister said in his press conference: ‘People should know that as far as dealing with offences under the Prevention of Corruption Act is concerned, the CBI is autonomous. Its superintendence is only in the purview of the Chief Vigilance Commissioner. Our government does not interfere in any way in that area.’
The 38th report of the parliament committee on the department of personnel is of the view that legal empowerment of the CBI is in the public interest. We have sent a draft law to the government, giving professional autonomy to CBI to undertake investigation related to subjects mentioned in the Union list.
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