Can state police investigate functioning of PSU Banks


I am working in a bank. Recently, we received a notice from the office of the local SP, regarding a complaint said to have been filed at the local police. In this connection, police authorities have sought from us information and documents on all loans sanctioned during a 3 year period, documents on a loan said to have been granted to a particular person. 


My question is, when bank has not made a complaint against any of its officers, and bank has decided that no corruption or fraud has been committed in that branch, can state police investigate alleged corruption in a PSU bank branch by way of fishing enquiries? Are they having jurisdiction to do so? Is it not the jurisdiction of CBI to investigate corruption in banks?


Kindly share your opinions and views, 




MM Chishty




It all depends upon the complaint and court direction involved, they (state police ) do have jurisdiction to investigate.


Dy Director

It appears to be a corruption matter.


it is within jurisdiction of CBI.


But it is not out of jurisdiction for state Vigilance burea or local police. 


The difference is that IO in case of CBI/SVB cannot be below Inspector and if case is regsitered in thana the IO cannot be low DSP.

remaining procedure is same.


Internal decision of PSU is not relevant. 




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