Another point that needs to be highlighted here is that public sector banks account for a substantial chunk of the total amount involved in such cases. 18. Another glaring issue in this context is the considerable delay in declaration of frauds by various banks in cases of consortium/ multiple financing.
We have on occasions observed more than 12–15 months lag in declaration of the same case as fraud by different banks, which not only enables the borrower to defraud the banking system to a larger extent, but also allows him considerable time to erase the money trail and queer the pitch for the investigative agencies. 19.