ED arrests Kotak Mahindra Bank manager in Delhi

On Tuesday, the ED raided the two Kolkata premises of Lodha and seized investment documents.

Paras Mal Lodha being produced in Saket Court for allegedly converting over Rs 25 crore in demonetised currency notes into new ones, in New Delhi.

The Enforcement Directorate on Wednesday arrested a Kotak Mahindra Bank branch manager who, with his accomplices, allegedly received about ₹13 crore from lawyer Rohit Tandon to recycle ₹38 crore in demonetised currency.

Investigating agencies have already seized ₹13.5 crore from Mr. Tandon, while his contact Paras Mal Lodha, a Kolkata-based businessman who allegedly converted over ₹25 crore in old notes, has been arrested.

The cash deposited in the accounts of the bank’s Kasturba Gandhi Marg branch in the national capital was converted into 84 drafts.

However, soon after the fraud was detected, all the drafts were cancelled and the money transferred to the Income-Tax Department.

It is alleged that the branch manager, Ashish Kumar, and his accomplices had demanded 35 per cent as commission for the job.

Stating that the bank had been cooperating with the authorities concerned, a bank spokesperson said the accused manager has been suspended.

“The bank on its own, on observing the nature of transactions in these accounts, proactively filed a report with the Financial Intelligence Unit for further investigations well in time. On subsequent investigation by the Income-Tax authorities, the bank, as per their instructions, deposited the entire amount paid into these accounts with the Income-Tax Department,” said the official.