Demonetisation: I-T dept detects alleged irregularities in conversion of old scrapped notes worth 120 crores by a co-operative bank

The Income Tax department has detected alleged irregularities worth Rs 120 crore in conversion of old scrapped notes by a co-operative bank here.

The I-T department conducted multiple searches in the bank and also in the residential premises of its executives and after about five days of operations, it detected that a number of RBI guidelines were flouted leading to illegal conversion and exchange of scrapped notes.

It was also found that the bank, post demonetisation, opened a number of new accounts to allegedly facilitate huge deposits using weak Know Your Customer (KYC) documents.

Officials said the department has seized a number of records from the bank and has summoned a number of bank executives for questioning.