Axis Bank officials come under CBI scanner for allowing deposit of Rs 100 crore during demonetisation period

The Central Bureau of Investigation on Friday registered a case against Axis Bank officials from an Ahmedabad branch, along with nine private persons and unknown others, for allowing huge unauthorised transactions in accounts of shell companies during the demonetisation period. 

As per the CBI release, the case has been registered under section 20-B of IPC r/w 420, 467, 468, 471 of IPC and Section 13(2) r/w 13(1)(d) of the PC Act, 1988 against then Branch Manager and two officials of Axis Bank, and other private persons. 

CBI on Friday conducted searches in Ahmedabad at 16 places including office and residential premises of the accused persons.

According to the release, old notes were allegedly 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.100.57 crore in about 25 Shell Company Accounts maintained with Axis Bank, Memnagar Branch, Ahmedabad," the release read. 

Further, the release said that it was 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, 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 demonetised notes, huge cash deposits were made in the bank several times during a day by a single person, the release mentioned. 

"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."

Moreover, it was 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 demonetisation 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".

CBI pointed out that 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 and has converted the black money into white by misusing the banking channels.