Two officials from the Reserve Bank of India (RBI) and a private bank appeared before Srinivasan, Judge of the Special Court for Cases under the Tamil Nadu Protection of Interests of Depositors Act (TANPID) and gave their evidence in the Paazee forex scam vouching to the fact that the firm had operated without any licence from the Reserve Bank of India and also regarding the transfer of funds from the accounts of the promoters.
Central Bureau of Investigation (CBI) had registered a case against three promoters of the firm Mohanraj, Kadiravan and Kamalavalli on charges of defrauding 52,893 investors to a tune of Rs.870 crore.
The CBI had listed 1,432 witnesses and filed a 14,000 page charge sheet in the case.
Already two officials from RBI had deposed as witnesses in the case.
On Thursday, Savithri Ramani, Assistant General Manager of RBI — Chennai (Foreign Exchange Division) appeared before the judge and in her deposition, the official said that any firm operating as non-banking finance company or involved in foreign exchange trading should register their names and obtain a licence.
The official said that Paazee firm that operated within the jurisdiction of the RBI — Chennai during the period 2007-09 had never obtained any licence or permission from the apex bank.
The official also made it clear that one licence obtained for a purpose could not be misused or used for any other supplementary business or sister concerns.
Manager of a private bank at Tirupur, Subramanian representing the previous manager Nedumaran now serving abroad stated that he was deposing based on the documents pertaining to the Paazee forex firm and those relating to this case.
Based on documents, the official said that there had been transactions worth several lakhs in the accounts of the promoters of the firm during the period pertaining to the case.
Advocate Gnanabharathi in his cross examination of witnesses asked the RBI official as to whether any complaint was received by the RBI pertaining to Paazee operations for which the official said that she was not aware of those details.
Next hearing in the case has been posted to July 30.