CBI ARRESTS Managers of Karnataka Bank and Dhanalaxmi Bank for unauthorisedly Diverting New Currency Notes to some individuals in violation of Reserve Bank of India Circulars.

CBI Press Release
New Delhi, 05.12.2016

The Central Bureau of Investigation has arrested two private persons, residents of Bangalore in an on-going investigation of a case relating to alleged diversion of new currency notes illegally.

CBI has registered a case U/s 120-B r/w 420, 406, 409, 468, 471 & 477A of IPC and Sec. 13(2) r/w 13(1)(c) & (d) of the PC Act, 1988 against Chief Manager of Karnataka Bank; Manager of Dhanalaxmi Bank; a PWD officer of Karnataka Government; three private persons, all residents of Bangalore; a private company (involved in deposit of new currency notes in ATMs) and unknown public servants & unknown others on an information that after de-monetization announced by Government of India on 08.11.2016, some officials of public sector banks & private sector banks colluded with some middlemen & agents and have been unauthorisedly diverting several crores of new currency notes to some individuals in violation of Reserve Bank of India circulars.

It was alleged that the accused; said private company and unknown officials of other public sector & private sector banks in a criminal conspiracy had fraudulently diverted the new currency meant for deposit/replenishing the ATMs of different banks and exchanged them against old demonetized currency notes through various middlemen/agents. The said agency/company was handling funds of around 18 banks including some public sector banks.

Searches have been conducted at 10 locations at different places across the city of Bangalore including at the residences of bank officials; private persons; offices of Karnataka Bank, Dhanalaxmi Bank and said private company. During searches, several incriminating documents including, computer hard disks; applications along with the ID proofs submitted to the bank for exchange SBNs & vouchers through which money was withdrawn have been recovered. Scrutiny is on to compare the cash received from RBI and disbursed by the bank.etc.

CBI is also in close coordination with other agencies of Government of India who are also investigating into this matter. A sum of around Rs.5 crore was also recovered during searches by a Government Agency.

Both the arrested accused were produced today in the Designated Court at Bangalore and remanded to five days police custody.

Source: http://cbi.nic.in/pressreleases/pr_2016-12-05-1.php

CBI REGISTERS A CASE AGAINST SENIOR MANAGER OF CENTRAL BANK OF INDIA AND OTHERS
Press Release
New Delhi , 06.12.2016

            The Central Bureau of Investigation has registered a case U/s 120-B r/w 420 of IPC & Section 13(2) r/w 13(1)(d) of the PC Act, 1988 against Senior Manager & Branch Head, Central Bank of India, Basavanagudi Branch, Bangalore; two Directors of a private firm based at Bangalore and unknown officials of Central Bank of India & unknown others on an  information to the effect that after de-monetization announced by Government of India on 08.11.2016, officials of Central Bank of India, Basavanagudi Branch were issuing DDs to various persons by accepting de-monetized currency notes of Rs. 500/- and Rs. 1,000/-.

           It was alleged that Branch Manager, Central Bank of India during the period 15.11.2016 to 18.11.2016 has violated the guidelines of Reserve Bank of India and issued 149-DDs for amounts less than Rs. 50,000/- each in favour of a private firm based at Pune for an aggregate amount of Rs. 71,49,000/- (approx) by accepting  old de-monetized currency notes of Rs. 500/- & Rs. 1,000/-. It was further alleged that these DDs were purchased by two partners of Bangalore based private firm after depositing old currencies in cash. However, the amounts were staggered and 149 DDs were issued for amount less than 50,000/-. This was allegedly done by the accused fraudulently to convert the old demonetized notes into cash. Subsequently these DDs have been cancelled and encashed by the accused. Thereby clandestinely old notes got converted into new notes.

           Simultaneous searches have been conducted at various places across Bangalore including the residence of bank officials and private persons which led to recovery of incriminating documents including bank vouchers, counterfoils, DDs, property documents, hard disks and cash of Rs 5,91,500/- (approx) in old 500 & 1000 denominations.

           Further investigation is in progress.

http://cbi.nic.in/pressreleases/pr_2016-12-06-3.php