The Income Tax department sleuths questioned the Chairman and Managing Director of Union Bank of India (UBI), MV Nair, over the bank reportedly accepting deposits worth Rs. 991 crore from a frontman of former Jharkhand Chief Minister Madhu Koda. The CM is facing charges against money laundering.
During the questioning that lasted for over three hours, the Sleuths are said to have enquired Nair whether the bank followed RBI norms while accepting such a huge amount. Nair said that the bank had already informed the Income Tax department that it had followed all the KYC (Know Your Customer) and anti money laundering norms while accepting the deposits.
Nair said, "Both the accounts (of Balaji Bullion) were registered as bullion accounts and transactions in bullion are primarily in large volumes of cash."
As per RBI norms, banks are required to ask specific details if the amount deposited in the account is more than Rs. 50,000.
The frontman of Koda had allegedly deposited more than Rs. 991 crore in the UBI account of Mumbai based Balaji Bullion Bazaar during 2008 and 2009 at its Zaveri Bazaar branch.