The CBI on Saturday conducted searches at Bank of Baroda branches in Delhi in connection with the illegal transfer of suspected black money to the tune of over Rs6,000 crore to Hong Kong by 59 current account holders in collusion with bank officials.
The raids came after the agency registered a case against 59 people who hold current accounts with the Ashok Vihar branch of the bank for alleged violation of banking norms in overseas remittances of over Rs6,000 crore.
“The CBI, along with the Enforcement Directorate(ED), conducted searches on three premises, including the Bank of Baroda, Ashok Vihar Branch, Delhi, and also the residential premises of two bank officials whose roles have allegedly emerged in the said case. Incriminating documents recovered during searches are being scrutinised,” a CBI spokesperson said.
Sources said the joint team of CBI and ED officials searched the premises of Assistant General Manager (AGM) SK Garg and Foreign Exchange Officer Jainish Dubey, besides the Ashok Vihar Branch of Bank of Baroda. Both Garg and Dubey are posted at the Ashok Vihar Branch of the bank.
The CBI has registered a case against the current account holders and the accused officials under Sections 120-B (criminal conspiracy), 420 (cheating) of the IPC and other relevant provisions of the Prevention of Corruption Act. The agency registered an FIR following a complaint from Bank of Baroda.
“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 Rs6,000 crore in illegal and irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports,” the CBI said in a statement.
The unusual remittances were spotted in the audit report of the bank in which these 59 companies having the current accounts were found to be engaged in dubious transactions in the garb of fraudulent imports, the CBI sources said.
The ED on its part is set to register a case under the stringent Prevention of Money laundering Act and Foreign Exchange Management Act after taking cognisance of the CBI’s FIR.
The Government has taken the financial irregularities seriously and promised speedy measures to stop such fraudulent transactions. “Action will be taken against guilty officers,” Minister of State for Finance Jayanta Sinha said.
However, attacking the NDA Government, the Congress alleged the “scam” had put a question mark over Prime Minister Narendra Modi’s commitment to the black money issue and asked him to explain why complaint had not been filed against the bank’s officials.
“The PM claims in Bihar that during his 18-month rule his Government can’t be charged with corruption. But at the same time a bank in Delhi transfers Rs6,172 crore abroad without any proper documentation, which indicates that their claims are hollow. Why is there no FIR filed in the caseIJ” said Congress leader and former minister of State for home RPN Singh.
“The Government claims that it has brought Rs4,000 crore back as black money, but on the other side the Bank of Baroda has transferred Rs6,172 crore to Hong Kong in the names of 59 companies, all of them registered on wrong addresses,” he said.
Singh said that all that the Government has done is remove one bank manager.
“One is forced to wonder as to how a Government bank did not adhere to the very basic due diligence as regards deposits, transfers and withdrawals by any entity in any bank,” he asked.