The Income Tax (I-T) department carried out search and seizure operations on October 27 at the headquarters and one of the branches of a credit cooperative bank in the state. The residence of the chairman and one of its directors were also covered, the agency claimed on Saturday.

As per an IT official, the analysis of bank data on Core Banking Solutions (CBS) and the statements of key persons recorded during the search action have revealed glaring irregularities in opening the bank accounts. The official said more than 1,200 new bank accounts were opened in the said branch without PAN identifications. The investigations have also revealed that these accounts were opened without following KYC norms and all account opening forms were filled in by the bank staff, putting their signature/thumb impressions.

In these accounts, multiple cash deposits each of Rs 1.9 lakh, totalling to Rs 53.72 crore, were made, the official said. He added that out of these, more than 700 bank accounts were opened in series, where cash deposits of over Rs 34.1 crore were made immediately within seven days of opening from August 2020 to May 2021. “These deposits have been structured to avoid mandatory PAN requirements for cash deposits over Rs 2 lakh. The money has been subsequently converted into fixed deposits in the same branch,” the official said.

Local enquiries of a few account holders have demonstrated that these persons categorically denied any knowledge of such bank accounts or even the fixed deposits, and are not aware of any cash deposits.

The chairman, CMD and the manager of the branch, could not explain the source of cash deposits and accepted that these were done at the behest of one of the directors of the bank, who is a prominent local businessman engaged in trading of grains. On the basis of the evidence gathered and statements recorded, the entire amount of Rs 53.72 crore has been restrained.

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