CBI has registered an FIR against a Bank of Baroda official and another person for allegedly converting demonetised notes worth Rs 6.50 crore in contravention of rules.
CBI has alleged that SK Dogra, chief manager of BoB Mandoli branch in New Delhi had allegedly opened a current account of one Akash Arora nearly a month before demonetisation was announced without completing KYC formalities.
Two days after November 8, 2016, when Rs 1,000 and Rs 500 notes ceased to be legal tender, Arora allegedly deposited Rs 15 lakhs in the current account in old currency against which Dogra issued a fixed deposit (FD) of Rs 16 lakh, the FIR said.
On the basis of the FD, an overdraft (OD) account in the name of Arora was opened by Dogra with limit of Rs 15.20 lakhs on November 10, 2016. Arora allegedly used the OD account to transfer Rs 15 lakhs to Jain Abhushan same day.
This process was again repeated next day albeit with different amount, it said.
Between November 11 and December 29, 2016, Arora kept on depositing old currency totalling over Rs 6.50 crore which were credited to various companies, the CBI alleged.
According to the FIR, Rs 2.40 crore was transferred to Dhampur Sugar Mills Pvt Limited, Rs 1.30 crore to Jain Abhushan, Rs 90 lakhs to Jindal Bullions, Rs 25 lakhs to Gogia Flour Mills Pvt Limited, totalling Rs 6.77 crores.
These amounts were transferred by Arora without having any business transactions with these companies, it alleged.
“Arora has acted as money mule and dishonestly got transferred demonetised currency notes by adopting such illegal activity with the active connivance of S K Dogra, chief manager, who by abusing his official position, has also allowed transactions in both the accounts -current account and OD account simultaneously, in violation of Banker’s Book of Instructions, 2012 of Bank of Baroda,” the FIR alleged.
It said that such large cash deposits were allowed by Dogra despite Arora’s account not being KYC compliant.
Dogra “falsely” informed anti-money-laundering officer (AMLO) of the bank that these amounts have been credited to sugar mills as Arora was a wholesale dealer and his account was KYC compliant.
In his communication, Dogra did not inform AMLO that the money was being transferred to jewellers and with “dishonest intention” did not intimate these high value transaction to regional heads, as required by the Bank of Baroda procedures put in place last year, it alleged.
CBI said that Dogra connived with Arora and other unknown persons and by misusing his official position, he dishonestly exceeded the OD limit in the name of Arora and also allowed him to deposit the cash amount in the form of demonetised notes repeatedly.
He transferred the said funds to other person and companies on the request of Arora with the objective to defeat government policy pertaining to demonetising of high valued government currency notes, the FIR added.