DMK Treasurer M K Stalin demanded that Chief Minister O Pannerselvam order the inquiry while PMK leader Anbumani Ramadoss sought the intervention of state Governor Ch Vidyasagar Rao.
Referring to the inspections carried out by Income Tax sleuths in Central Cooperative Banks, especially in Salem and Cuddalore last week, Stalin said there were reports that these banks had been allegedly used by some ruling AIADMK leaders to convert blackmoney post scrapping of Rs 500 and Rs 1000 notes.
In a statement here, Stalin, also the Leader of the Opposition in the state assembly, said the inspection at the Salem Central District Cooperative Bank, which had received the President's award four times for best performance, has shocked the people.
Co-operative banks had been directed not to take up any financial transactions of demonetised currency, he said adding suitable investigation should be taken up on how these banks accepted "fixed deposits of old (Rs 500 and Rs 1,000) notes".
He demanded that Chief Minister appoint a committee to conduct a probe into the alleged illegal deposits of scrapped notes, sack those heads of banks found guilty and protect the integrity of the cooperative institutions.
Ramadoss in a statement urged Governor Rao to order an investigation into the issue as the cooperative banks come under the purview of state government.
Noting that Income Tax department and Reserve Bank of India had taken up separate investigations, he said, "Since these banks come under the control of state government, the Governor and Chief Secretary should conduct an inquiry."
Income Tax investigation officials have undertaken a state-wide exercise to check whether there was any illegal transfer of funds in co-operative banks following reports that a large amount of demonetised notes have been deposited in some branches of the Co-operative Banks.