The Income Tax Department has seized Rs. 53.72 crore in black money deposits after a search and seizure operations on the headquarters and one of the branches of an Urban Credit Cooperative Bank in Maharashtra, according to an official statement issued on Saturday.
The Chairman, MD and the manager of the branch, could not explain the source of cash deposits and accepted that these were done at the behest of one of the directors of the bank, who is a prominent local businessman engaged in trading of foodgrains.
The residence of the Chairman and one of its directors was also searched in the operation on October 27.
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According to Income Tax Department statement, more than 1200 new bank accounts were opened in the branch without PAN, through multiple cash deposits each of exact denomination of Rs. 1.9 lakh. The total sum adds up to Rs. 53.72 crore. Out of these, more than 700 bank accounts have been identified which were opened in series, where cash deposits of more than Rs 34.10 crore were made immediately within 7 days of opening of bank accounts mainly during the period August, 2020 to May, 2021.
These deposits have been structured to avoid mandatory PAN requirement for cash deposits over Rs 2 lakh. The money has been subsequently converted into fixed deposits in the same branch.
The analysis of bank data on Core Banking Solutions (CBS) and the statements of key persons recorded during the search action has revealed the glaring irregularities in opening the bank accounts. The investigations have revealed that these bank accounts were opened without following KYC norms and all account opening forms are filled in by the bank staff and they have put their signature or thumb impressions.
Local enquiries in a few cases of such account holders, showed that these persons are not aware of cash deposits in the bank and categorically denied any knowledge of such bank accounts or even the fixed deposits.
Further investigations are in progress, the official statement said.
