CBI arrests senior branch manager of Central Bank of India, 2 directors of pvt firms in Bengaluru

The Central Bureau of Investigation (CBI) has registered case against senior branch manager and other unknown officials of Central Bank of India and two directors of private firm in Bengaluru on Tuesday in an alleged notes violation norms of RBI.

" The CBI has registered a case U/s 120-B r/w 420 of IPC and Section 13(2) r/w 13(1)(d) of the PC Act, 1988 against Senior Manager and Branch Head of Central Bank of India, Basavanagudi Branch, Bangalore; two Directors of a private firm based at Bangalore and unknown officials of Central Bank of India and unknown others on an  information to the effect that after demonetisation announced by the Government of India on November 8, 2016, officials of Central Bank of India, Basavanagudi branch were issuing demand drafts (DDs) to various persons by accepting demonetised currency notes of Rs 500/- and Rs 1,000/-,” cited the CBI in a press release published on its website.

In a surprise move to curb black money, corruption and terrorism, Prime Minister Narendra Modi had announced on November 8 to demonetise old notes of Rs 500 and Rs 1,000 notes as legal tender from circulation. 

ALSO READ: India abolishes larger banknotes in fight against graft, 'black money'

“It was alleged that  branch manager of Central Bank of India during the period between November 15, 2016 to November 18, 2016 has violated the guidelines of Reserve Bank of India (RBI) and issued 149-DDs for amounts less than Rs 50,000/- each in favour of a private firm based at Pune for an aggregate amount of Rs 71,49,000/-(approximate) by accepting old demonetised currency notes of Rs 500/- and Rs 1,000/-,” it further added. 

According to CBI, this was allegedly done by the accused fraudulently to convert the old demonetised notes into cash. The DDs have been cancelled and encashed by the accused, it said. 

At 15:03, the stock of Central Bank of India was trading up 0.35% or Rs 0.30 at Rs 86.30 on the BSE.

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