JOIN USThe manager has been asked to appear before the Enforcement Directorate by Saturday 2 pm, official sources here said.
The notice in in connection with the massive deposits of Rs 640 crore made by Koda's alleged front companies in the branch between November 2006 and December 2009.
The bank has come under scanner for allegedly failing to alert the financial intelligence unit of these transactions. As per the guidelines, any cash transaction above Rs 10 lakh has to be reported by the branch concerned to the financial intelligence unit.
The Enforcement Directorate will ask the official to give details on whether all rules were followed before accepting such a huge deposit and whether the branch officials had informed the establishment about the transaction. The Reserve Bank of India rules direct banks to authenticate the identity of the depositor and the source of the funds. The huge cash transactions in the branch were reportedly carried out by a Balaji group company - Balaji Bullion Bazar, during six months from November 2006 and April 2007.
Balaji Group’s promoter is believed to be linked to Koda, who is being investigated by Enforcement Directorate as well as other authorities such as revenue intelligence for accumulating wealth disproportionate to his known sources of income. The scam runs into Rs 4000 crore or more.
Common practice
Bank officials said it is quite common for bullion firms to transact large volumes of cash at the bank branches, which may not invite any alarm.
The Balaji group has manufacturing units at Noida and Surat, and is also involved in real estate business.