ED investigating into alleged irregularities in import remittance transactions at IndusInd Bank

14 Jul 2022 , 08:47 AM

On July 13, private sector lender IndusInd Bank announced that the Enforcement Directorate has opened an investigation into alleged financial irregularities involving a number of firms and some bank employees.

According to the lender’s exchange note, a First Information Report (FIR) was submitted to Chennai Police on July 9, 2022, against some of these individuals and organizations as well as a few bank employees.

According to the lender, there is no credit exposure of the bank to these firms. The alleged fraudulent remittance transaction occurred between 2011 and 2014.

According to the bank, “The Directorate of Enforcement…has been examining a few firms, among other things, for some suspected anomalies in remittances for import transactions conducted throughout the year 2011 to 2014.”

“The ED has filed a First Information Report (FIR) dated July 9, 2022, with Chennai CCB-1 Police Station against some of those firms and a select group of Bank personnel, the majority of whom have already left the Bank, as part of the inquiry. The annexure and an entire copy of the FIR are currently being located. The Bank does not have any credit exposure to these firms “It added.

For many of these entities during the pertinent time, the bank had suo moto filed Suspicious Transaction Reports (STRs) with the regulatory authorities.

Aside from that, the bank reported certain dishonest businesses to the police authorities in 2015. In addition, the problem was investigated by the RBl in October 2015, and the bank was fined, which was announced to the stock exchanges in a letter from the bank dated July 28, 2016, the memo added.

The communication stated that “The Bank continues to give full cooperation and support to the Law Enforcement Agencies and is duty-bound to take necessary action against any of the mentioned personnel if proven to have knowingly assisted in the conduct of any unlawful transaction.”