Mumbai headquartered Shamrao Vithal Co-operative Bank-the third UCB after Saraswat Bank and Cosmos Bank has been in news for all the wrong reasons. Its reporting of Rs 1,400 crore in deposits in the wake of demonetization shows a vast gap leading the ED sleuths knocking at its door.
People connected with SVC Co-op Bank, however, vouch for the Bank’s clean record and say it may be a genuine case of oversight. SVC has been above board and never has a finger been pointed at it in the past, they remind.
Looking at its track record no case has been filed against the SVC Bank yet. ED would take a call when the preliminary inquiries are over, said a source.
Efforts to contact MD of the Bank Mr Suhas Sahakari failed as his PA Anil Sharma said Mr Sahakari is in the meeting.
Media reports suggest when the agency began to scrutinize the bank’s accounts, it came to light that it had actually received only Rs 900 crore. The remaining Rs 500 crore was merely an overstatement.
The RBI referred the case to the ED for an investigation. ED officials suspect massive money laundering, said a source.
Readers would recall the ED has asked the 300 district co-operative banks to provide CDs containing details of all deposits and other transactions, particularly the deposits made since the demonetization of Rs 500 and Rs 1,000 notes on November 8.
The agency will examine cash deposits, money transfers through RTGS (real time gross settlement), new accounts opened since demonetization, and accounts these banks may have in other government and private commercial banks where they deposit their collections.
The government has also asked the income tax department and the CBI to join the probe against co-operative banks. The work has been divided between three agencies to complete the task in a specific time frame and prosecute those found involved in laundering black money.