BENGALURU: After raids on properties of two government officers and their associates, which unearthed crores of unaccounted wealth, Income-Tax Department officials are now putting banks under scanner. According to sources, notices have been issued to three banks in Erode and Bengaluru, of which two are reputed private banks with several branches in the city.
Also on Friday, Home Minister G Parameshwara announced the suspension of two officials - S C Jayachandra, Chief Planning Officer of State Highway Development Project, PWD, and T N Chikkarayappa, Managing Director of Cauvery Neeravari Nigam Ltd. He said that a thorough inquiry has been ordered by the State government and action will be taken against the officials based on the report.
The officials of Income-Tax Department of Karnataka and Goa region have continued raids and investigations into the properties of these two officials and their aides. According to the department, unaccounted assets seized from the officials and their aides stood at Rs 152 crore. Income-Tax officials suspect that apart from the two, several others might have converted large amount of their black money after paying a commission. They suspect that most of these banks, which had facilitated such transactions, to be either co-operative or private banks, present in large numbers across the State.
According to sources in Intelligence and Criminial Investigation Wing of the I-T department, as many as 500 notices have been issued to various parties, whose transactions have been suspicious. “These notices are issued to keep track of transactions after demonetisation. Some of the persons who had used Jan Dhan accounts to channel their funds have also been issued notice,” the official said. Persons to whom notices have been issued will have to appear before the inquiry team, failing which action will be initiated against them.
The official said that they had expected such fraudulent transactions in advance and had kept an eye. “We have also been asked to send regular reports about such activities on a daily basis to the Head Office, so that action can be taken at an appropriate time,” the source said. The officials were suspended by the State government following a furore by opposition members. As soon as both the Legislative Assembly and Council resumed the winter session, the opposition demanded an explanation over the large amount of funds unearthed.
Income Tax officials, who are attempting to trace the source of the Rs 6.6 crore that was seized from the houses of two government officials on Wednesday believe that the amount was received as commission for awarding a major project.
According to I-T department sources, the project was awarded to a bidder ahead of the demonetisation move.
T N Chikkarayappa, Managing Director of Cauvery Neeravari Nigam Limited, had allegedly received the commission from a bidder who had won the project. The commission was, however, paid in old denomination notes which were rendered invalid from November 8.
So after the demonetisation move, Chikkarayappa allegedly demanded with the firm that he be paid in new denomination notes, sources from the Income Tax Department said.
Involvement of banks
What has stumped the I-T officials is how such a large amount of cash was converted without raising any alarms. This indicates that bank officials might be running a commission-based illegal operation, officials say.
They are also investigating the purpose behind hoarding such large amount in cash. This is the largest amount of cash seized in the new Rs 2,000 notes in the country.
Sources say the money seized was only a small portion of the ‘2 per cent’ commission received for awarding a major project in the state. “The remaining funds might have been siphoned off using other methods,” the source added.
Major alert
I-T sleuths say they were alerted about some illegal transaction after Trijesh bought a high-end luxury sports car. Trijesh is the son of S C Jayachandra, Chief Planning Officer, State Highway Development Project, PWD Department. The car was bought by paying about Rs 5 crore in cash. This alerted the I-T sleuths, who then conducted raids in 10 properties belonging to the two officials and their associates in Bengaluru, Erode and Chennai.
They also suspect that the person who had converted the old denominations to new for Chikkarayappa might be involved in a major scam of converting notes. IT officials are on a lookout for this person.
‘This is just the tip of the iceberg’
Bengaluru: Though the Income Tax officials have seized unaccounted assets worth Rs 152 crore from two state government officials and their aides, they suspect that this is just the tip of the iceberg. They have also summoned IAS and IPS officers from Tamil Nadu in connection with the case.
Department sources say three banks that have reportedly carried out the cash transactions have been issued a notice. However, details of the bank officers summoned and the banks being probed have not been divulged yet. The officers have been accused of helping in the transportation of cash.
I-T officials had seized Rs 6.6 crore cash, bullion of approximately 7kg and about 9kg jewellery. Rs 5.7 crore was found as the new Rs 2,000 notes, while Rs 90 lakh was in old notes. The 7kg gold recovered was worth Rs 2 crore.
The raids were held at the residence of Trijesh, son of S C Jayachandra, Chief Planning Officer of State Highway Development Project, PWD. Officials found Porsche and a Lamborghini registered in his name.
27 erring senior bankers suspended
New Delhi: In a major crackdown on bank employees involved in irregularities post demonetisation, 27 senior officials of various public sector banks have been suspended and six others transferred to check corrupt practices.Some cases have come to the notice of officials involved in carrying out transactions
which were irregular and in violation of RBI’s instructions, the finance ministry said in a statement.
Share measures taken to ease cash woes: SC
New Delhi: Expressing concern over the suffering and inconvenience caused to people especially in rural areas due to the demonetisation move, the Supreme Court on Friday asked the Union government to share measures taken to help them. A bench headed by Chief Justice T S Thakur said, “People living in rural areas are dependent mostly on the co-operative banks and post offices, what is centre’s plan to help them.”