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Union Bank faces probe in Koda case

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BS Reporter Mumbai
Last Updated : Jan 21 2013 | 12:29 AM IST

Authorities investigating a disproportionate assets case against former Jharkhand chief minister Madhu Koda will start questioning top officials of the Union Bank of India tomorrow regarding funds deposited in the bank’s Zaveri Bazaar branch here.

Taxmen have summoned officials, including the bank’s Chairman and Managing Director M V Nair, in connection with deposits amounting to over Rs 600 crore flowing into a branch in Mumbai. A bulk of the deposits are said to have been made in cash. In addition, the authorities are investigating if the Union Bank had informed the Financial Intelligence Unit, the designated anti-money laundering agency, about the large flow of funds into the accounts alleged to have been operated by Koda’s associates.

“We are cooperating with the investigative agencies. We are working for the same purpose,” Nair said. Earlier in the day, Union Bank executives said that the bank’s branches, including the one in Zaveri Bazaar, were following all know-your customer norms. Later, executives said the bank had launched internal investigations to find out if all norms had been complied with or not. “We will take required action once clarity emerges on the issue,” a senior executive said.

Meanwhile, Koda today apprehended threat to his life while he toured his constituency in Chaibasa area of Jharkhand. This was Koda’s first visit to his constituency ever since the I-T department and Enforcement Directorate raided various places across the country, including Koda’s residence.

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First Published: Nov 14 2009 | 12:39 AM IST

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