Firms, banks under scanner over Rs 1,350 cr black money

  • Sanjib Kr Baruah and Gaurav Choudhury, Hindustan Times, New Delhi
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  • Updated: Jul 09, 2013 02:19 IST

The recent detection of Rs 1,350 as unaccounted income through a new money laundering modus operandi of Private Placement Programmes (PPP) has brought several firms and banks under the government scanner.

 The Enforcement Directorate (ED) and the Central Economic Intelligence Bureau (CEIB) are scrutinising investments made through PPP in at least nine firms and are readying a raft of actions against these firms following the findings in these “appraisal reports.”

 “The new modus operandi of laundering money is through instruments such as PPP and convertible debentures, which are being used to obscure the source of slush funds. We are also seeking more information from the RBI and the Financial Intelligence Unit (FIU),” said a top finance ministry official.

 “Another major cause of concern is many banks are issuing letters certifying these money deposits as clean and unencumbered. Clearly banks do not have the authority to issue such letters. We have sought more details on this and appropriate action will be taken,” the source added. details on this and appropriate action will be taken,”the source added.

 

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