According to media reports, the ED has alleged that these officials misused cash credit facilities and laundered the proceeds to Dubai via Hawala route
The Enforcement Directorate has registered case against officials from state-run Dena Bank, Oriental Bank of Commerce (OBC), Bank of India (BoI), Vijaya Bank and UCO Bank under the Prevention of Money Laundering Act (PMLA), say reports.
According to media reports, the ED has alleged that these officials misused cash credit facilities and laundered the proceeds via Hawala route to Dubai.
Earlier in August 2014, the Economic Offences Wing (EOW) of Mumbai police had unearthed a largescale banking fraud worth about Rs1,000 crore related with fixed deposits (FDs) in several banks. The EOW also registered 10 first information reports (FIRs) against several people, including some officials from banks.
According to reports, banks involved in this large-scale FD fraud include, Dena Bank, UCO Bank, Syndicate Bank, Bank of Baroda, Vijaya Bank, Dhanalaxmi Bank, Bank of India and Indian Overseas Bank among others. Among the institutions who were victims of the fraud are the Mumbai Metropolitan Regional Development Authority (MMRDA) and South Indian Education Society (SIES) Trust.
During the same month, Dena Bank and OBC initiated action against bank officials following reports of Rs436.7 crore fraud in their branches. Dena Bank officials allowed Rs256.69 crore transfer through overdraft facility, while OBC transferred Rs180 crore received from Jawaharlal Nehru Port Trust (JNPT) as bulk deposit to one Padmavati International.
JNPT had already filed a case with Central Bureau of Investigation (CBI) and the matter is under investigation.
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