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Margadarsi: RBI Steps In
Posted by Pradeep Sadanapalli | April 22, 2008 | 450 views
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Loading ...The Reserve Bank of India has started taking action on banks that have allegedly helped media baron Ramoji Rao’s Margadarsi Financiers to violate section 269 SS (which says no entity can accept more than Rs 20,000 in cash) of the Income Tax Act.
Following reports in these columns, RBI officials rushed in from Mumbai and summoned top officials of the Andhra Bank to inquire into the charges of abetment.
A director and an executive diector of the bank met RBI officials to explain the facts.
RBI officials also sought records on the violations from the income-tax department. A senior I-T official met them to clarify issues.
Earlier, I-T officials led by the commissioner, Mr J.K. Hota, had summoned officials of the ICICI, IDBI, Andhra Bank, Karur Vysya Bank and Centurion Bank and recorded their statements. “We have started inquiring into charges of violation of regulations by few banks,” said an RBI official.
I-T officials are also planning to lodge complaints on bank officials who helped Margadarsi by issuing demand drafts and pay orders to third parties in violation of banking regulations. Sources said that more than 300 bank officials including chief managers, managers and cashiers are under the scanner for such violations.
“We are trying to find out what forced them to flout the banking guidelines,” said an I-T official. “We are sure that they were aware of the rules but ignored them.” To buttress their stance, the I-T department has got hold of the transaction records of some of the banks.
“The records reveal that many DDs and pay orders issued did not mentioned the PAN number which is a violation of rules,” said the I-T official.
SOURCES:
Deccan Chronicle
Topics: Finance |
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