New Delhi: Union Bank of India on Friday said that all accounts at its Zaveri Bazar branch in Mumbai, where former Jharkhand CM Madhu Koda and his associates allegedly parked crores of rupees, are compliant with the know-your-customer (KYC) norms and there has not been any irregularity.
"All accounts at the Zaveri Bazar branch are KYC-compliant and there has not been any irregular transaction noticed so far," Union Bank of India sources said in New Delhi.
Under the KYC norms, banks are required to verify the antecedents of the person at the time of opening an account. The KYC norms include details such as address proof, annual income, etc.
The Zaveri Bazar branch of the Union Bank shot to picture after the CBI alleged that Koda and his associates had parked close to Rs 1,000 crore in the branch.
At the same time, sources said, the bank has not so far received any summon from the Income Tax Department or the Enforcement Directorate.
However, the Income Tax Department sources said that the department would question the Union Bank CMD for not following due diligence while accepting deposits of more than Rs 990 crore from Koda.
IT department sources said that Union Bank Chairman and Managing Director MV Nair was summoned by the Mumbai IT office for its negligence to question Koda and frontmen when they deposited tens of crores of rupees in their bank.
It has been found that out of the total Rs 991 crore that Koda and his accomplices deposited in the Zaveri Bazar branch, nearly Rs 500 crore were deposited in cash.
The former CM of the mine-rich Jharkhand is accused of amassing illegal wealth worth more than Rs 2,000 crore and parking them in over 70 bank accounts. Various law enforcement agencies are investigating the scam.
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