The bulk of funds involved in alleged Rs 6,100 crore black money remittance case have been routed through proper banking channels involving over 30 banks, Bank of Baroda (BoB) officials said on Monday.
“Bulk of the fund came from over 30 banks either by RTGS or NEFT. 90% of amount has come from various banks. Only 10% cash transaction has taken place at our branch,” BoB executive director BB Joshi told PTI.
The investigation will lead to money trail and clear the air as to whether it was black money or not, he said. He further said the Rs 6,100 crore remittance amount being mentioned is exaggerated and the actual amount involved should be much less than that.
Last week, CBI and the enforcement directorate started a probe into the matter.
It is alleged that Rs 6,172 crore black money was remitted from Bank of Baroda to Hong Kong camouflaged as payments for non-existent imports like cashew, pulses and rice.
It is also alleged that amount was deposited in 59 accounts of the bank’s Ashok Vihar branch (New Delhi) in cash as advance for import and the money was sent to some selected companies in Hong Kong.
The branch opened 59 current accounts during the period May 2014 to June, 2016 through which large foreign exchange remittance were done, the bank said in a regulatory filing.
“During the period total 5853 outward foreign remittances transactions aggregating to 546.10 million dollar (around Rs 3,500 crore) for the purpose of advance remittance for imports and for other purposes have been remitted through 38 current accounts to various overseas parties numbering about 400, mainly based in Hong Kong and one of them in UAE,” it said.
The bank admitted that the branch did not adhere to FEMA (Foreign Exchange Management Act) guidelines. In 33 accounts where cash transaction took place, it said regular cash transaction report were generated and mailed to financial intelligence unit as there have been frequent cash deposits, it said.
After the thorough internal enquiry, the matter was reported reported to CBI and enforcement directorate and also to finance ministry on September 24.
Emphasising that it is the bank which detected these irregular transaction and reported it to CBI and ED, Joshi said the bank has terminated the services of the concurrent auditor.
“We have taken action against our own employees. Two employees have been suspended -- one branch head and an officer dealing in the forex,” he said.
These people have done it in very thoughtful manner and guilty won’t be spared, he said. Asserting that there is no financial loss to the bank in this case, he said there is, however, damage to the reputation.