The Central government has allowed its anti corruption watchdog to scrutinise suspicious banking transaction of Rs. 10 lakh and above by its public servants. This comes in the wake of allegations of Cadbury’s local unit evading excise duties in India and retail giant Walmart offering kickbacks to obtain clearances in the country.
India’s central vigilance commission (CVC) that monitors corruption in government offices will now receive reports on any suspicious transaction within the government enterprise.
The commission has recently included a list of agencies to receive suspicious transaction report (STR) prepared by India’s Financial Intelligence Unit (FIU). Any monetary dealing of Rs. 10 lakh and above, done using money raised from criminal activities, including that of proceeds from black money, is called a suspicious transaction.
Official sources told PTI that the exercise was aimed at narrowing money flow from corrupt activities entering into the banking system. It added that such an effort would check collusion between government employees and private individuals especially while investigating corruption cases.
CVC has already received information from FIU and investigation into any such offences is ongoing, said the source.
CVC was added to FIU’s member list on par with other government agencies like Enforcement Directorate, Central Bureau of Investigation, Reserve Bank of India, Securities and Exchange Board of India, National Investigation Agency, Central Economic Intelligence Bureau and chief secretaries of state governments and others.