Bank staffers illegally converted Rs 3.5 crore in old notes: I-T dept

During this period, the department alleged, over “500 dormant accounts suddenly became active”, and some 1,200 accounts were opened, many of which are “benami accounts…in the name of third persons or the account holders have only lent their names”.

The I-T department is probing the source of around Rs 120 crore deposited in the bank since demonetisation. “It is suspected that most of this money was black money which has been deposited in third party accounts in connivance with… bank officials and routed back to the beneficiaries,” alleged the department. An FIR has been lodged at Darya Ganj police station.

Bank chairperson Rajesh Jain admitted that the I-T department had conducted raids at the bank’s premises and at vice-chairperson Pradeep Jain and director Shashank Jain’s homes, but denied any wrongdoing. “Total Rs 3.5 crore was converted. How could it all be ours? Public also deposited with us. My money was not exchanged. This is wrong,” he said.

On the alleged benami accounts, he said, “There were nine fake accounts. We have already identified them and suspended four officials…” On the opening of 1,200 accounts and currency exchange, Jain sought to lay the responsibility on the bank staff. “The management is not involved in day-to-day working. RBI guidelines are clear that the management cannot intervene (in daily functioning),” he said. “There is no wrongdoing, it’s negligence,” he added.

On December 26, the investigative wing of the I-T department first conducted a search at the bank’s head office in Darya Ganj and four other branches. “It is suspected that most of this currency exchange (Rs 3.5 crore) happened privately by members and staff in a clear violation of RBI guidelines,” alleged the department, adding that the entire staff of the bank, right from the chairperson to the peon, were involved in the exercise, but a majority of the amount was exchanged by the management.

The I-T is also probing “benami accounts” since “in some of the accounts, the signature of the introducer was found to be fake”. “Money has also been deposited in more than 500 dormant accounts, which have suddenly become active after demonetisation,” alleged the department. It also claimed that “CCTV footage was deliberately destroyed by the management.