Delhi’s Daryaganj headquartered Jain Cooperative Bank has been in the news again for all the wrong reasons. The IT sleuths have found Rs 120 crore deposited in 1200 fictitious accounts in the UCB in the wake of demonetization.
Media reports suggest that the idea of illegal operation to launder the black money was conceived by the Chairman and Board members when they held a secret meeting by even switching off the camera.
Chairman Rajesh Jain and Vice-Chairman Pradip Jain are said to be the men behind the nefarious plan. They devised a plan to overcome Rs. 4,500 limit and allowed filling up of the forms using identity cards of fake persons.
Throwing the RBI norms as well as their own caution to the wind, they allegedly fixed their own quota of exchange of demonetized notes which was kept Rs 50 thousand for the Chairman and Rs 4 thousand for the peon. The secret meeting also instructed each person to arrange their fake identity proofs, it is being alleged.
The bank had also been penalized on earlier occasions by the RBI for violating the inter-bank exposure limit, exposure to real estate sector, non-adherence to KYC guidelines, to Do’s and Dont’s prescribed for the Board of Directors, loans to Directors and their relatives, non-submission of compliance to previous RBI reports etc.
