Refer cases of frauds to CBI, not police: CVC tells CPSEs

Noting that very few cases of commercial frauds are being given for probe to the CBI, the Central Vigilance Commission has told all central public sector enterprises (CPSEs) to refer high value cases to the premier investigating agency rather than local police.
In a fresh directive, the CVC has asked the CPSEs to refer fraud cases to local police where the amount involved is less than Rs 25 lakh or when CBI refuses to take up such matters. There are 240 CPSEs across the country.
"The Commission has of late observed that the number of cases or instances involving criminal misconduct including financial irregularities and frauds detected in the CPSEs being referred to the CBI for investigation are very few every year," it said.

The CVC said it has noticed instances of some CPSEs referring cases prima facie involving criminal offences, financial irregularities and high value frauds to the local police authorities instead of referring to CBI for investigation.
The anti-corruption watchdog said that all cases of frauds wherein involvement of officials of the CPSE is prima facie evident shall be referred to the Anti-Corruption Branch of CBI. In cases where involvement of officials is not evident, they shall be referred to Economic Offences Wing of CBI, it added.
The CVC, which exercises superintendence over the vigilance administration of the CPSEs, said as a general rule, investigation into the criminal matters should be entrusted to the CBI.

As per rules, all cases in which allegations are criminal in nature (i.E. Bribery, corruption, forgery, criminal breach of trust, possession of assets disproportionate to known source of income and cheating) or require inquiries to be made from non official persons should be entrusted to the CBI.

The cases which need expert police investigation for arriving at a conclusion or requiring investigation abroad should also be referred to the CBI, the rules said.
It is also prescribed that the CPSEs should ordinarily send to CBI only such cases involving transactions not less than RS 25 lakh and possessing national or international ramifications.

"In other words, matters wherein prima facie commission of any criminal offence under the Indian Penal Code, Prevention of Corruption Act, 1988 or any other law are required to be referred to the CBI by the CPSEs," the CVC has clarified.