The Serious Fraud Investigation Office (SFIO) has initiated a probe into the alleged Rs 6,100-crore black money transaction case involving a Delhi branch of Bank of Baroda.
“Besides CBI and ED, SFIO has also initiated a probe into the BoB matter,” a senior Finance Ministry official said.
The SFIO is a multi-disciplinary organisation under the Ministry of Corporate Affairs to tackle white-collar crimes or frauds.
Last week, CBI and the Enforcement Directorate started investigating the matter. It is alleged that Rs 6,172 crore black money was remitted from Bank of Baroda to Hong Kong which was passed off as payments for non-existent imports like cashew, pulses and rice.
It is also alleged that the amount was deposited in 59 accounts of the bank’s Ashok Vihar branch (New Delhi) in cash as advance for import and the money was sent to some select companies in Hong Kong.
The branch opened 59 current accounts during May 2014 to June 2015 through which large foreign exchange remittances were done, the bank said in a regulatory filing.
During this one year, a total of 5,853 outward foreign remittances aggregating USD 546.10 million (around Rs 3,500 crore) were made through 38 current accounts to various overseas parties numbering some 400, mainly based in Hong Kong and one in the UAE.
The bank has admitted that the branch did not adhere to FEMA (Foreign Exchange Management Act) guidelines.
As many as six persons including two officials of Bank of Baroda — S K Garg and Jainish Dubey — have been arrested in this case for criminal conspiracy, cheating and provisions of the Prevention of Corruption Act.
Garg was AGM while Dubey headed the foreign exchange division at BoB’s branch in Ashok Vihar.