Bankers moot panel to okay arrests of senior executives

Unanimously condemning the arrest of the Bank of Maharashtra brass for "taking bona fide decisions", top bankers on Friday called for forming an independent committee to give clearances to initiate criminal proceedings against senior bankers.

In an emergency meeting called by the Indian Banks Association (IBA) here today, bankers unanimously expressed anguish and concern over the arrests which they described as "bona fide decisions taken by the BoM officials in extending loans to the scam-tainted developer."

"Bankers plans to propose to the government that an independent committee, probably with a senior representative from the central bank, be formed to give clearance for initiating criminal proceedings against senior bankers.

"This will ensure a smooth functioning of the banking industry and enable decision-making," IBA chief executive VG Kannan said.

Meanwhile, in a statement issued by All India Bank Employees’ Association, general secretary, CH Venkatachalam said, “… Arresting them at this stage in connection with this (DSK Group case) is unwarranted. If there is any involvement of these officials in DSK scam, they should be taken to task but as per our information, they are not involved in the same.”

"Bankers are not concerned if a company takes deposits from the public, and therefore their arrest is unwarranted," Kannan said.