New Delhi [India], Feb. 3 : The Enforcement Directorate (ED) on Friday filed first chargesheet against Axis Bank officials in money laundering case of demonetised notes.
The ED filed a Prosecution Complaint against Vineet Gupta, Shobhit Sinha and Rajeev Singh Kushwaha under the Prevention of Money Laundering Act (PMLA) in the case of conversion of old denomination Indian currency note in to monetised form using the services of Kashmiri Gate Branch of AXIS Bank.
The ED started investigations on November 30, 2016 following filing of FIR No. 416/2016 registered by Delhi Police Kashmiri Gate under section 420/120B of IPC. During the investigation, it was revealed that Kushwaha and others in active connivance with Axis Bank, Kashmiri Gate officials - Vineet Gupta (Branch Head) and Shobhit Sinha (Operations Head) deposited huge amount of demonetised currency upto the tune of Rs.
40 crore to the account of various firms/companies run by him for a huge commission and converted it into monetised form (RTGS/gold).
This all started when following demonetisation, people with illegal money started to convert their old currency notes into gold/legal tender.
These bullion traders wanted payments in RTGS/transfer of money through banking channel for the sale of gold as old currency was not accepted.
Some of such elements contacted Rajeev Singh Kushwaha and his associates for this purpose. Kushwaha was having various fictitious companies/firms namely M/s Himalaya International, M/s RD Trader and M/s Beagle Marketing and M/s Sunrise Trading.
They contacted Gupta and Sinha to get special facilities to put the old currency in to the banking system through their fictitious/shell companies having current account in Kashmiri Gate Branch offering huge commission.
Kushwaha and his associates collected old currency charging huge commission from various people and infused that money in to banking system and acting against the law.
The amount so deposited in these companies account was transferred to various Bullion Traders for procurement of gold which was given to the person who had given them their illegal money in old currency.
Gupta, Sinha and Kushwaha were arrested for their involvement in money laundering and are presently in judicial custody.
Assets belonging to Gupta and others worth Rs 3.4 crore, involved in the offence of money laundering, are under attachment.
Further investigation is in progress..