By TIOL News Service

NEW DELHI, APR 08, 2017: THE CBI has registered a case against then Branch Manager & two officials of Axis Bank, Memnagar Branch, Ahmedabad; nine other private persons and unknown others. It was alleged that the officials of Axis Bank, Memnagar Branch, Ahmedabad had abused their official position by allowing huge unauthorized transactions in accounts of Shell Companies during the period of Demonetization in November-December, 2016. That such OHD notes were allegedly being deposited by a group of persons in name lending accounts with the help of Branch Manager and other bank officials. The bank officials had allegedly violated the guidelines related to KYC, Anti-Money Laundering and Due Diligence to be excercised by them.

It has been alleged that at least three groups of the Cash Handlers have deposited approximately Rs 100 crore in about 25 Shell Company Accounts maintained with Axis Bank, Memnagar Branch, Ahmedabad.

It was further alleged that the owners of the so called Shell Companies as well as the persons who were used for depositing huge cash in the said accounts where the persons of no-means and whose profile was non-commensurate with the quantum of such huge suspicious deposits. They have been “lending” the accounts for such unscrupulous transactions involving cash deposits on “commission” basis. It was also alleged that during grace period of depositing demonetized notes, huge cash deposits were made in the bank several times during a day by a single person In many such instances, the depositor deposited huge cash by way of submitting multiple deposit slips in one go, with cash value of less than Rs 9 lakh, per slip, as per the advise of the bank officials. It was also alleged that cash deposit slips of approximate amount of Rs. 13 crore are not available with the bank. Such Cash deposits made in the suspected bank accounts were immediately transferred to the accounts of bullion traders and jewellers by way of RTGS. As per the guidelines, during demonetization period, the cash could have been deposited by the account holder or its representative with due authorization. However, in the above cases, majority of the pay in slips bear forged signatures of the account holders, which were ignored by the bank officials.

The private persons in active connivance with the Bank officials had allegedly failed to disclose their unaccounted wealth, in accordance with the amnesty schemes declared by the government of India and has converted the black money into white by misusing the banking channels.

Searches are being conducted today at Ahmedabad at 16 places including office and residential premises of the accused persons.