The Central Vigilance Commission has flagged 42 cases, including 10 by the railways and five by Canara Bank, where government departments significantly deviated from its advice to act against corrupt officials, according to a report.

Besides the railways and Canara Bank, there were two such cases each by Syndicate Bank, Bank of India, Mahanadi Coalfields Limited and Employees' Provident Fund Organisation (EPFO), the report said.

Also, one case each has been reported in Union Bank of India, Andhra Bank, LIC of India, Central Board of Indirect Taxes and Customs (CBIC), Oil India Limited and Oil and Natural Gas Corporation Limited, it said.

One case each by the Government of National Capital Territory of Delhi (GNCTD), Khadi and Village Industries Commission, NTPC Limited, Bureau of Indian Standards, Department of Empowerment of Persons with Disabilities, Ministry of Shipping, National Highways Authority of India and Airport Authority of India among others were also noted for noncompliance of the CVC advice against the corrupt.

The CVC has observed that during the last year, there were some significant deviations from the Commission's advice, said the 2020 annual report tabled in Parliament during the recently-concluded Monsoon session and uploaded on its website on Tuesday.

Non-acceptance of the Commission's advice or non-consultation with the Commission vitiates the vigilance process and weakens the impartiality of the vigilance administration, it said.

Giving details of the cases of deviation by the railways, the report said a Senior Section Engineer/Quality Assurance/Signal & Telecom/Research Designs & Standards Organisation inspected and passed substandard signalling cable of length 42.196 km supplied by the contractor.

On 18 November 2019, the Commission, after considering the report of Inquiry Officer and comments of Disciplinary Authority (DA), advised imposition of a major penalty on the Senior Section Engineer/Quality Assurance, the report said.

The Disciplinary Authority (General Manager/Southern Railway), in an order on March 17, 2020, however, imposed a minor penalty on the Senior Section Engineer, it said.

Citing details of a case by Canara Bank, the CVC said a limited company engaged in infra projects was sanctioned working capital fund based limit of Rs 50 crore and non-fund based limit of Rs 150 crore by Credit Approval Committee (CAC) on August 1, 2013.

There were persisting over dues in the working capital account. DGM of the branch permitted an additional bank guarantee limit of Rs 21.50 crores in favour of Family Credit Limited for allowing funds against retention money receivable, beyond his delegated powers with 5% margin on 12.01.2016, it said.

After issue of the bank guarantee of Rs 21.5 crore, there was a credit of Rs 20.16 crores into the account, subsequent to which the account turned NPA, the report said.

The Commission advised for imposition of a major penalty on the DGM as recommended by the Chief Vigilance Officer (CVO).

The DA imposed a major penalty of reduction to a lower stage in time scale of pay by one stage for a period of one year during which period he shall not earn increments of pay and the reduction shall have the effect of postponing future increments of his pay .

On an appeal preferred by the DGM, the Appellate Authority reduced the major penalty to that of a minor penalty of censure, it said.

Mentioning another case, the report said the officials of a branch of Life Insurance Company including the then Senior Divisional Manager (Marketing) had used foul play, pressured the branch manager to resort to bogus business to achieve targets of the branch.

Huge amount was spent on get together parties, gift items, cash offers, TA, DA etc. in violations of underwriting procedures, it said.

The Commission had advised for initiation of major penalty proceedings against the officials involved including the then Senior Divisional Manager, the report said.

The Disciplinary Authority imposed penalty of censure' against the then Sr Divisional Manager. The Commission has decided to include the case as deviation by the Disciplinary Authority in its annual report, it said.

The CVC report said the CBI had registered a case against officials of Khadi & Village Industries Commission (KVIC) on the basis of complaint with allegations that the public servant has cheated the government to the extent of Rs 80.78 lakh on the pretext of executing Central programmes in respect of Marketing Development Assistance (MDA) scheme.

One of the alleged officers of the case did not conduct the inspection before release of MDA assistance, it said.

As a result of which huge amount of funds meant for artisans could not reached them, the report said.

The CVC on January 31, 2018 advised the initiation of a major penalty proceedings against four officials of Khadi & Village Industries Commission.

On advice of the Commission, the Disciplinary Authority imposed the penalty in line with Commission's advice on the three charged officers. One of the charge officers was exonerated by the Disciplinary Authority without consultation of the Commission which is violation of vigilance administration. The decision of disciplinary authority is at variance with Commission's advice," it said.