Rs 40 Crore Deposited In Old Notes In An Axis Bank Branch, Hints At Money Laundering By Bank Officials

The Logical Indian

November 29th, 2016

Source: The Times of India The Hindustan Times | Image Courtesy: The Hindustan Times

Amid the hubbub of demonetization of Rs 500 and Rs 1000 notes, the Income Tax department raided the Kashmere Gate branch of Axis Bank in New Delhi on Friday after two people were held with new notes amounting to Rs 3.5 crore. The person was arrested on 21 November.

The IT Department officials carried out searches at  the bank premises and at the residence of two senior bank officials. It is said to be the largest seizure of unaccounted money since the demonetization announcement.

The IT intelligence is suspecting that more banks might be involved in the money laundering racket and on a much larger scale.

The racket  operated from old Delhi and Laxmi Nagar areas was unearthed when some entry operators and jewellers were found collecting and depositing money in banks. The sources claim that the managers were allegedly paid Rs 40 lakh for under the counter transactions, as reported by The Times of India.

“The two bank officials received old notes worth Rs 30 crore from a hawala operator and converted it to newly minted Rs 500 and Rs 2,000 currency. The bank officials took 30% commission in gold bars,” says IT sources, as reported by The Hindustan Times.

The culprit has an active account with the bank since the last four years. This unaccounted money was deposited in three newly-opened accounts in Axis Bank. The deposits made between November 11 and 22 amounted to Rs 39.26 crore.  This was later transferred out of the bank to other accounts through Real-time Gross Settlement systems (RTGS) and other electronic transfers converting the entire amount to white money.

The bank manager is responsible to ensure that the customer’s account complies with Know Your Customer (KYC) procedures and alert any suspicious transactions to Financial or IT intelligence.

After the interrogation, it was revealed that the bank manager had extended the special counter facility to the accused to deposit banned currency notes beyond banking hours.

The demonetization of Rs 500 and Rs 1,000 notes was to curb a parallel economy running on black money in the country, but ironically people have already figured out loopholes in the system.

 

Share your thoughts..

Related Stories

Rs.100 Crore Fraudulently Transferred From Jharkhand Government’s Account To A Private Company

No Information On How Much Black Money Was Removed By Demonetisaion: RBI

Free Transactions

HDFC, ICICI, Axis Banks Are Charging Rs 150 After 4 Free Transactions From This Month

Kishore Bhajiawala

Rs 1 Crore In New Currency Seized From Gujarat Businessman Who Used 700 Persons To Withdraw Money

Income Tax Raids In Bengaluru

New Notes Of Rs 2000 Worth Rs 4.7 Crore Found In Income Tax Raids In Bengaluru

UPI Apps

Use UPI Apps From Major Banks To Instantly Receive Money In Your Bank Account

Latest on The Logical Indian

News

In One Of The Poorest Regions Of Jharkhand, Thousands Denied Ration In The Name Of Aadhaar

Fact Check

Mysterious Death Of 21-Yr-Old Given Communal Colour By BJP Karnataka, Sparks Violence

Others

Finance Minister Defends FRDI Bill Again, Says Will Protect Depositors Interest

News

Arunachal Civil Services Examination Had 50% Questions Lifted From Pakistani Website

Awareness

New SC Ruling: Hotels, Restaurants Can Sell Bottled Water Above MRP

News

Karnataka BJP Leader Caught In Camera Asking Workers To Bluff & Lie To Voters