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Case 15: Shell Company at Delhi

Author: ITD Date:12-06-2017 17:08 PM

Investigations were initiated on the basis of information from the police following interception of a vehicle carrying cash of Rs. 3.7 crore in old currency. The carrier confessed to have deposited nearly 35 crore of cash in old denomination note in the bank since 11.11.2016. The bank accounts were opened in the name of paper companies. Cash was collected from various parties, deposited in Bank account of one such fake company, then transferred through RTGS from one company to another company bank account and after three- four layering, were finally deposited in the account of original owner. All these accounts were operated by a single person. This was done with active involvement of the Branch Manager and the Operation Manager in lieu of commission at the rate of 1% on the sums deposited. In this case deposits were made in the names of 3 paper companies.

The bulk cash deposit was accepted by the bank based on declarations on respective letter heads of the Proprietorship Firms, conveying that the respective cash deposits were out of the cash sales. Several anomalies were found in such declarations including declarations of separate concerns written on common letter heads in similar font, style, type of paper. The signatures appeared to have been put by same person. The declarations did not contain reference numbers or PAN details. The deposits were made on one particular day after 6:30 pm i.e. after closure of business hours. These bank accounts had no cash deposits before 8th November, 2016. The Enforcement Directorate and the CBI are also taking action in this case on a reference made by the Income-tax Department.
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