NEW DELHI: Investigations by the income tax department have found that a large number of cooperative banks have been manipulating and laundering unaccounted money post demonetisation of high denomination currency notes of Rs 1000 and Rs 500 on November 8.
As the department’s findings suggest a general absence of requisite regulatory oversight over cooperative banks across the country, the government feels the need for a strong regulatory framework.
An official said a cooperative bank in Daryaganj in Delhi was investigated by the I-T department after information was received about alleged money laundering.
The bank’s senior officials and directors allegedly conspired and assisted in opening 1,200 benami accounts in which Rs 120 crore in unaccounted cash were deposited and Rs 3.2 crore in old banned currencies exchanged with new currency within weeks of demonetisation, circumventing the RBI regulations.
In another investigation, by the Enforcement Directorate, it was found that a district cooperative bank in Mumbai reported Rs 1,400 crore in deposits post-demonetisation.
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