Kotak Mahindra raided by Income Tax department, bank denies fake accounts

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Updated: December 23, 2016 2:08:02 PM

The Income Tax department on Friday raided the Kotak Bank's KG Marg branch in connection with the survey of two of its customers and related accounts.

kotak mahindra raid, it raids kotak mahindra bank, ktak mahindra bank raided, kotak mahindra denies fake accounts, bank raid, demoneytisation raidAccording to Rohit Rao, Spokesperson of the Kotak Mahindra Bank, no deficiencies in the KYC norms were found. (Reuters)

The Income Tax department on Friday raided the Kotak Bank’s KG Marg branch in connection with the survey of two of its customers and related accounts. Although the bank continues to deny that there were any fake accounts. According to Rohit Rao, Spokesperson of the Kotak Mahindra Bank, no deficiencies in the KYC norms were found. Rao said that the Income Tax department also questioned the bank manager in this aspect. Rao added that there was no submission of any adverse report to the bank and the bank fully denied that the existence of any fake accounts. Although the bank was extending full cooperation to the investigating agencies, he added.

Earlier yesterday, Axis Bank found itself under the scanner of the Income Tax department again after deposits of Rs 89 crore were found in 19 suspicious accounts. According to India Today, quite a lot of irregularities were found in the Ahmedabad branch of the bank with a suspicious money trail leading to bullion builders. It was also reported that 4 bank officials were under the Income Tax department’s scanner for their involvement in the case. Earlier this month, the I-T department had raided an Axis Bank branch in Central Delhi’s Chandni Chowk and reportedly found out about 44 fake accounts. According to reports, I-T officials had said that about Rs 100 crore in old notes had been deposited in the accounts since November 8, the date of the announcement of demonetisation by Prime Minister Narendra Modi with an objective to curb down the flow of black money in the country. According to reports, a sum total of Rs 450 crores have been deposited in the Chandni Chowk Branch of the Axis Bank since the ban was announced, I-T officials added.

The officials said that these 44 fake accounts had been created by the usage of forged documents. they said that the investigators suspected that the money might have been routed to buy gold. This is the second such raid to have been reported at a branch of Axis Bank. The Income Tax Department had again conducted a raid at an Axis Bank branch in Noida and unearthed Rs 60 crore from the accounts of 20 shell companies. Axis Bank MD and CEO Shikha Sharma had said that the recent media reports on the conduct of the employees had left her embarrassed and upset. She assured that they had taken strict actions against such employees and would continue to do so in every case of divergence from their code of conduct. Rajesh Dahiya, executive Director, Corporate Centre, Axis Bank released a statement saying that the bank would take action as and when any malpractices by employees are confirmed. He had also warned that while the complete banking industry was working tirelessly to make the government’s initiative of demonetisation and digitalisation successful, action by some unscrupulous elements to circumvent laid out processes would not be tolerated.

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