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    Question

    A public sector bank manager sanctioned loans to

    ineligible applicants. The applicants paid the manager Rs. 1 lakh per loan. The manager also facilitated waiver of penalties for defaulters who paid "facilitation fees." Under PCA, which statements are correct? Statement 1: Sanctioning ineligible loans for gratification is an offence under Section 7. Statement 2: Waiving penalties in exchange for fees is an offence of abuse of official position. Statement 3: The manager can claim defense if loans were eventually recovered. Statement 4: Applicants and defaulters are accomplices under Section 12 of PCA. Which statements are correct?
    A Statements 1, 2, and 4 only Correct Answer Incorrect Answer
    B Statements 1 and 3 only Correct Answer Incorrect Answer
    C Statements 2 and 4 only Correct Answer Incorrect Answer
    D Statements 1, 2, and 4 only Correct Answer Incorrect Answer
    E All statements are correct Correct Answer Incorrect Answer

    Solution

    Taking gratification for improper decisions is Section 7 offence—Statement 1 is correct. Abuse of position for gratification is offense—Statement 2 is correct. Recovery doesn't excuse gratification—Statement 3 is incorrect. Beneficiaries are accomplices—Statement 4 is correct. Statements 1, 2, and 4 are correct.

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