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Success Story

Case 11: Cooperative Bank at Delhi

Author: ITD Date:12-06-2017 17:07 PM

Search was conducted on the head office and branches of a Cooperative Bank at Delhi. The bank used demonetisation as an opportunity to earn illegal commissions for handling unexplained cash. The Chairman and his associates systematically opened Benami and fraudulent accounts to launder cash for beneficiaries. More than 1200 new accounts were opened and 600 dormant accounts were made active post 8 November, 2016 in the name of third persons or name lenders or on the basis of fake IDs without KYC documents.

A total of more than Rs.120 crore was deposited in the Bank by 26 December, most of which were routed back to the beneficiaries. Preliminary verification in more than 2500 accounts with cash deposits above Rs. 1 lakh and available balance above Rs. 1 lakh has been done. Eleven Benami accounts have been identified for action under Benami Transactions (Prohibition) Act, 1988 (as amended by Benami Transactions (Prohibition) Amendment Act, 2016. Details of the case have also been shared with the CBI, the ED and the Registrar of Societies.