Around 1,200 suspicious accounts with Rs. 120 crore in deposits have been found by the Income Tax department at a Delhi-based cooperative bank, authorities said, suggesting a huge scam to convert scrapped notes.
For five days, authorities said they conducted searches at the head office of Jain Co-operative Bank at Delhi’s Daryaganj area and all its other branches at Karol Bagh, Shahdara, Gandhi Nagar and Laxmi Nagar.
According to the Income Tax department, the entire board of the bank met in the office the bank’s chairman in Daryaganj on November 12, three days after the government announced it was banning old 500 and 1,000-rupee notes in an effort to curb corruption and black money.
The meeting was attended by the chairman Rajesh Kumar Jain, vice-chairman Pradeep Jain, two independent directors and nine other directors, sources said.
During this meeting, the officials allegedly formed a plan to circumvent the limit of Rs. 4,500 placed on the exchange of old currency by the RBI, tax officials said.