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Maharashtra co-operative banks in Rs 10,000 crore fraud ?

Cooperative banks have once again come under the scanner of the income-tax (I-T) department. While the department suspects a mega fixed deposit (FD) scam spread over several co-operative banks, there is another fraud through demand drafts worth less than Rs 50,000, which is the maximum that one can deal without producing PAN cards.

As per I-T department’s primary probe, banks are managing unaccounted monies, mostly of politicians, running into at least Rs 10,000 crore in benami FDs.

Simultaneously, I-T sleuths have also unearthed a fraudulent pattern of these banks issuing DDs up to Rs 49,900 to avoid furnishing pan card details and flouting Know Your Customer (KYC) disclosures.

As per RBI guidelines, demand draft of any amount more than Rs 50,000 is taxable under the income-tax head ‘income from other sources’.

According to taxmen, the primary information point an accusing finger at half-a-dozen cooperative banks in Maharashtra. Other state cooperatives are also being looked into.

According to I-T sources, these banks are suspected of flouting RBI norms by managing huge chunks of money by converting them into smaller fictitious deposits, on which they earn interest as well.

“These people usually have such deposits in the name of drivers, housemaids or unknown names who are not even aware of such deposits in banks,” said officials.73371281-income-tax


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