While the official statement did not name the entity searched, sources identified it as Buldana Urban Cooperative Credit Bank.
“The analysis of bank data on Core Banking Solutions (CBS) and the statements of key persons recorded during the search operations have revealed clear irregularities in opening of bank accounts.
“More than 1,200 new bank accounts were opened in the said branch without pan (Permanent Account Number),” Central Board of Direct Taxes, which formulates policy for the tax department, said in a statement.
It said that the investigation found that these bank accounts were opened “without following” key (Know Your Customer) criteria and all account opening forms are to be filled by the bank employees and they have affixed their signature/thumb impression.
The department alleged that several cash deposits of “exact” denomination of Rs 1.9 lakh were made and they totaled Rs 53.72 crore.
“Of these, more than 700 bank accounts have been identified, which were opened in a series where cash in excess of Rs 34.10 crore within seven days of opening of bank accounts, mainly during the period August 2020-May 2021 was deposited,” it said.
“These deposits have been structured to avoid the mandatory PAN requirement for cash deposits above Rs 2 lakh,” it said.
The statement claimed that the money was later converted into a fixed deposit at the same branch.
The CBDT said that inquiries in certain cases of such account holders have revealed that they “were not aware of cash deposits in the bank and did not clearly have any information about such bank accounts or even fixed deposits”. denied”.
“President, CMD And the branch’s manager could not explain the source of the cash deposits and admitted that these were made at the behest of one of the bank’s directors, a prominent local businessman engaged in the grain trade.
“Based on the evidence gathered and recorded statements, the entire amount of Rs 53.72 crore has been withheld,” the statement said.