In the government’s ambitious move to wipe out black money, the notes ban is being followed by raids by the Income Tax Department, the Central Bureau of Investigation and the police across the country. The raids have indicated that new currency meant for the people is diverted to individuals through multiple illegal methods with the alleged involvement of banks.
In Bengaluru, the Basavanagudi branch of the Central Bank of India came under the scanner of the CBI when S Gopal, director of Omkar Parimal Mandir, a company manufacturing incense sticks, along with his son Ashwin Sunku, working for the same company, ordered 149 demand drafts worth Rs 70 lakh from the bank.
The demand drafts were issued in the name of MS Bajaj Finance Limited between November 15 and 18. The money for the demand drafts was paid in cash, all in old currency. Within days, they cancelled the drafts and the bank reimbursed the entire sum to them in cash, all in new currency. Bank association officials said this was against the RBI rules. Demand drafts cannot be issued against cash.