Lok Sabha Question No. 90 (STARRED), answered on 2015-12-04
Subject: Alleged Transaction Irregularities in Banks
Ministry: FINANCE
Asked by: ANANDRAO  ADSUL, RODMAL NAGAR

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA STARRED QUESTION NO. *90

TO BE ANSWERED ON FRIDAY, DECEMBER 4, 2015

AGRAHAYANA 13, 1937 (SAKA)

## Alleged Transaction Irregularities in Banks

90. SHRI ANANDRAO ADSUL: SHRI NAGAR RODMAL:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Enforcement Directorate/Central Bureau of   Investigation has busted irregularities and violation of Prevention of Money Laundering 2002/forex scam in the public and private sector banks in the country; Act,
- (b) if so, the details thereof along with the total loss estimated during each of the last three years and the current year; bank and State-wise;
- (c) whether the Government has initiated any inquiry and taken action against the bank/staff involved in such transactions, and if the details thereof; bank and State-wise; and SO,
- (d) mechanism to check and curb the activities of hawala transactions through banking channels in

## ANSWER

FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (d) : A statement is laid on the Table of the House.

## Anandrag Adsuland Shri Nagar Rodmal for

- (a) Yes, Sir:
- (6) The Central Bureau of Investigation (CBI) has registered 06 cases in the matter during the last 3 years and current year: In 04 cases, charge sheets have been filed in the court and two cases are under investigation. The details of these cases are given in the Annexure. Besides this, on receipt of a complaint from Bank of Baroda and registration of FIR by CBI; the Directorate of Enforcement registered a case under Prevention of Money Laundering Act; 2002(PMLA) As per the complaint,  foreign exchange equivalent to about Rs. 6000 crore was remitted by various persons through their newly opened 59 accounts of certain companies, in the of advance import  remittances to certain   companies abroad. similar case has also been registered by Directorate of Enforcement in respect of Oriental Bank of Commerce, subsequent to registering of FIR by Uttar Pradesh Police. In this case an amount of Rs. 380 crore was remitted to various companies based in Hong several fictitious companies during 2007-2011 and Rs. 100 crore was remitted from 2012 till 2014 similar modus operandi. garb too; Kong using using
- (c) Bank of Baroda has suspended Mr. Jaines Dubey, & scale officer and Mr. SK. (AGM) of  Bank of Baroda; Ashok Vihar Branch: The branch has also been de-categorized on 07.10.2015 for the purpose of undertaking Forex transactions. The branch and the other branches in the vicinity shall route such transactions through Intel. Business Branch; New Delhi: Garg
- (d) The Reserve Bank of India(RBI) vide circular letter dated October 28,2015 has issued instructions to all  scheduled   commercial banks highlighting the irregularities  observed. All banks were advised in the letter to look into these aspects and conduct a thorough Internal Audit and place the report before Audit Committee of the Board of respective banks and to forward the findings to RBI so that further corrective action as required may be taken in this regard   Further; FIU-IND in consultation with RBI, has also issued in November; 2015 guidelines specifying Red Flag indicators for detection of suspicious transactions related to trade based money laundering:

| N                             |               |     |
|-------------------------------|---------------|-----|
| 3 <                           | 1 8 9 29 1 33 |     |
| FSLL E L E L 6 & Ji 8 2 2 8 1 | 2 W           | 5 [ |
|                               | N             | 1   |
| 8 & E{                        |               |     |
| 5 2 5 E2 Fa L 9               | N 5 5" 3 1 1  |     |

|                 |               |                          | C       |
|-----------------|---------------|--------------------------|---------|
| 1 8 M 8 1 5 8 8 | 3 8 1 2 3 6 [ | 8 1 3 2 2                |         |
| 2 L 2 2         | L 2 3 N       | [ 2 1 H 74 4             | 2       |
| 2               | 3             |                          |         |
| 2 E 3 =         | 1 8           |                          |         |
|                 | 8 8 2 5 88 3  | 2 2 3 8 1 8 F 8 Li 3 [ 3 | 8 [ 5 1 |

<!-- image -->