Money moved to Hong Kong: CBI, ED search BoB branch for 6K cr ‘illegal transfer’

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The case was registered on a complaint from the bank which had found these “unusual” remittances during an audit of its accounts. CBI has registered its case under various sections of Indian Penal Code and the Prevention of Corruption Act against 59 current account holders and unknown bank officials and private persons.

“It was alleged that 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of foreign exchange worth approximately

Rs 6,000 crore in illegal & irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports,” a CBI statement said.

The suspicious transactions were routed to Hong Kong allegedly between August 1, 2014 and August 12, 2015. It has been alleged that there were 8,667 forex transactions from the Ashok Vihar branch of the bank, prompting a probe.
ED sources said that the agency has already registered a case against certain bank officials and private persons under the stringent sections of the Prevention of Money Laundering Act (PMLA).

The agency had conducted one search early this week and seized many documents. On Saturday, after searching various premises with CBI sleuths, the agency has seized documents related to the illegitimate money transfers.

An official said the matter is being investigated by CBI and internally by the bank. It was brought to notice by the bank itself and there will be no financial implications for the bank, he claimed.

BoB is now functioning without an MD and CEO. Ranjan Dhawan, MD & CEO-incharge, retired on September 30. Though the government appointed VBHC Value Homes managing director and CEO PS Jayakumar as the new BoB managing director in August, he is yet to take charge. BB Joshi is the only executive director of the bank. Former Microsoft India head Ravi Venkatesan is the non-executive chairman of the bank.

Last week, BoB detected a Rs 350 crore bill discounting irregularity and initiated an investigation into the matter. The bank discounted bills worth Rs 350 crore but the payment never came.

Under the scanner

*Searches were conducted by a joint team of CBI and ED at three premises including Ashok Vihar Branch in Delhi and at residences of BoB AGM SK Garg and Jainish Dubey, who is a forex officer.

*Two officials have been found to be involved in illegal transfer of funds to Hong Kong.