I-T freezes belongings over `53 cr of Maharashtra-based co-op financial institution

The Income Tax (I-T) Department seized over Rs 53 crore following a search on an city credit score cooperative financial institution in Maharashtra, the tax authority stated on Saturday.
While the division didn’t identify the cooperative financial institution, sources stated the motion was carried out towards Buldana Urban Cooperative Credit, its chairman and considered one of its administrators.
The I-T Department has discovered evident irregularities within the opening of over 1,200 financial institution accounts at one of many branches of the financial institution.
“The investigations have revealed that these financial institution accounts have been opened with out following KYC norms and all account opening kinds are stuffed in by the financial institution workers and so they have put their signature/thumb impressions.
“In these accounts, multiple cash deposits each of exact denomination of Rs 1.9 lakh were made totalling Rs 53.72 crore. Out of these, more than 700 bank accounts have been identified, which were opened in series, where cash deposits of more than Rs 34.10 crore were made immediately within 7 days of the opening of the accounts mainly during August 2020 to May 2021,” an announcement from the division stated.
According to the division, these deposits have been structured to keep away from the obligatory PAN requirement for money deposits over Rs 2 lakh. The probe discovered this cash was subsequently transformed into fastened deposits in the identical department.
“The chairman, managing director and the manager of the branch could not explain the source of cash deposits and accepted that these were done at the behest of one of the directors of the bank, who is a prominent local businessman engaged in trading of grains,” stated the tax authority.