The Enforcement Directorate (ED) in Mumbai has unearthed a Rs 200 crore foreign exchange scam. The ED proposes to move the Central Bureau of Investigation as the case seeks to involve banks operating in apparent contravention of RBI instructions.
The ED has identified Oklahoma-based Skybiz International Ltd as the mastermind behind the alleged pyramid scheme. The company has representative offices in Mumbai, Pune, New Delhi, Bangalore and Chennai. The ED had conducted raids on all the offices last week.
According to sources in the directorate, the banks had remitted money to Skybiz in violation of an RBI circular issued in October, 2000 which forbade banks from issuing any drafts in favour of such schemes.
The RBI instructions were reiterated in another circular in December 2000, which said banks should not make any remittances in cases of money spinning activities.
Typically, money spinning activities refer to pyramid schemes wherein early entrants are paid a handsome sum for getting a specified additional number of new members into the scheme.
The sources said Centurion Bank (New Delhi branch), HDFC Bank (Pune branch), Union Bank of India (Pune branch) and State Bank of India (Bhandup branch in Mumbai) figure among those which had remitted money in Skybiz. About $9 lakh had been remitted through these branches.
According to Centurion Bank officials, two remittances of $3,00,000 each were made on February 16 and 22, but in compliance with Fema guidelines.
