I-T Department questions Union Bank CMD on Koda money

CMD Nair said the bank told the I-T Dept that it had followed all KYC (Know Your Customer) & Anti-Money Laundering norms as per RBI directives. Madhu Koda scam

By PTI | Nov 16, 2009, 07.26 PM IST

MUMBAI: Income-Tax Department sleuths on Monday questioned Union Bank of India Chairman and Managing Director M V Nair over his bank reportedly accepting deposits of over Rs 991 crore from an alleged frontman of former Jharkhand Chief Minister Madhu Koda who is facing charges of money laundering.

During the questioning here lasting more than three hours, the taxmen are understood to have asked Nair whether the government-run bank followed all rules while accepting such a huge amount.

Nair said the bank told the I-T Department that it had followed all KYC (Know Your Customer) and Anti-Money Laundering norms as per the Reserve Bank directives.

"Both the accounts (of Balaji Bullion) were registered as bullion accounts and transactions in bullion are primarily in large volumes of cash," Nair told reporters while leaving the I-T Department premises here.

According to Reserve Bank guidelines, banks are supposed to ask for specific details if more than Rs 50,000 is deposited in an account.

Manoj Punamia, the alleged frontman of Koda, had reportedly deposited more than Rs 991 crore in the Union Bank account of Mumbai-based Balaji Bullion Bazar during 2008 and 2009, at its Zaveri Bazaar branch.

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