Finance Minister P. Chidambaram Wednesday ruled out a probe into private sector Global Trust Bank's (GTB) collapse, but said employees found to have mismanaged finances would be prosecuted.
"There is no need for a JPC (joint parliamentary committee) probe," he informed parliament while replying to a calling attention motion on the subject.
The Left parties, which extend support to the ruling coalition from outside, had demanded a JPC probe into the GTB's collapse.
"The government will not sit idle, but a criminal case will be registered against any employee responsible (for financial mismanagement) before the month is out," he said.
"If I fail (to punish the guilty), only then will the question of a JPC probe arise," Chidambaram said.
"Complete action will be taken. Nobody is being soft to anyone indulging in the criminal act."
He said the government had taken swift action after getting information about the GTB.
"We consulted the RBI and requested it to look into the matter and recommend action," Chidambaram said, reassuring the Left parties that no stone would be left unturned to punish the guilty.
He disagreed with a suggestion that no public sector bank had come forward to take over the GTB and pointed out that Oriental Bank of Commerce, which took it over, considered it a good purchase.
--Indo-Asian News Service