CBI arrests six people in connection with Rs 6,000 crore remittance scam at Bank of Baroda – Times of India

NEW DELHI: The Central Bureau of Investigation (CBI) on Wednesday arrested 6 people in connection with the Rs 6,000 crore foreign exchange remittance scam. Bank Of Baroda, which was detected in 2015, officials said.
He said the CBI also conducted searches at 14 places in connection with the case.
CBI spokesperson RC Joshi said the agency had filed a charge sheet against the then AGM of Bank of Baroda and the then foreign exchange officer of the bank on December 12, 2015 in the special judge’s court.
The CBI on Wednesday arrested six private persons Tanuj Gulati, Ish Bhutani, Ujjwal Suri, Honey Goel, Sahil Wadhwa and Rakesh Kumar as part of the ongoing probe in the case.
The agency had in 2015 registered a case against several bank officials and others for remittances of over Rs 6,000 crore to Southeast Asian countries by 59 current account holders from the Ashok Vihar branch of Bank of Baroda in the guise of alleged payments. non-existent” imports, he said.
CBI sources said the agency has found that the Ashok Vihar branch was a relatively new branch which was allowed foreign exchange transactions only in 2013.
He said that Rs 6,000 crore was transferred through about 8,000 transactions done between July 2014 and July 2015.
The amount remitted in each transaction was kept below $1 million.
“All the remittances were made to Hong Kong. The amount was remitted as advance for imports and in most cases, the beneficiary was the same,” an official said after registering the FIR.
“Most of the forex-related transactions were done in newly opened current accounts which saw huge cash receipts, but the branch did not generate an Extraordinary Transaction Report (ETR) and did not monitor high value transactions,” the senior official said. ,” the senior officer had said. said.
Sources said these remittances were sent by dividing them into amounts of less than $1 lakh to avoid being automatically detected by the software used by banks to alert them of such transactions.
He said the technique is known as smurfing in the parlance of taxation and holders were able to skip the scrutiny of such transactions.
Sources said the agency has identified most of the 59 accused.
“It has been learned that most of the addresses given by the companies/firms were either false or the companies/firms were not present at the said address. Most of the accused persons allegedly involved in the said offense have been identified and are being interrogated. It is going on,” the officer had said.