Vaidyanath Urban Co-operative Bank Ltd involved in the CBI case related to demonetised currency. The CBI has filed a closure report in the alleged fraud transport of unaccounted demonetised currency to the tune of Rs 25 crore by some officials of the Vaidyanath Urban Co-operative Bank Ltd. Dr Suresh Advani, a renouned Oncologist given the clean chit. Bharatiya Janata Party MP Pritam Munde controlled the bank.  Advani was among those booked in the case.

Understanding Vaidyanath Urban Co-operative Bank Ltd

The case was the first big case during the demonetization exercise in November 2016 probed by multiple agencies, including the CBI and the ED. The noted of Rs. 500 andRs.1000 declared as illegal tender. The Mumbai Crime Branch  intercepted a car at Chedda Nagar in suburban Ghatkopar. Hence, the car carried Rs 10 crore in old and new currency, that seized.

The case was subsequently handed over to the CBI, which booked four people, including Advani, on December 23 for criminal conspiracy, forgery, cheating and under certain sections of the Prevention of Corruption Act. The FIR filed by the CBI read, “Rs 10 crore were being transported by three employees of the bank from its Ghatkopar branch for fraudulently depositing the same into the account newly opened for the purpose with IDBI Bank, Pimpri Chinchwad on the false reason that the Maharashtra State Urban Cooperative Bank denied to keep the cash with them”.

Investigation

The CBI had alleged the accused “entered into a conspiracy and fraudulently transported” the money from the “head office of Vaidyanath Cooperative Urban Bank Ltd , Beed, Maharashtra to their Ghatkopar Branch on November 19, 2016, for changing it to legal tender”. The Maharashtra State Urban Co-operative Bank received Rs. 15 crore. The Balance amount of Rs. 10 Lakhs transported to Beed. The State Police intercepted them on December 15, 2016.

Additionally, the agency, during the course of the probe, recorded the statement of Vaidyanath Urban Co-operative Bank Ltd  bank’s chief executive officer Maheshchandra Kavathekar. The bank accepted the demonitized seized money. Hence, as the notes of Rs. 500 and Rs. 1000 banned from November 8,2016.

He also said the demonetised currency collected by the bank was being moved from its Ghatkopar branch to Pune as it was not able to deposit the amount of Rs 10 crore with the Maharashtra State Urban Cooperative Bank.

Therefore, to verify Kavathekar’s claim, the agency recorded the statement of Maharashtra State Urban Cooperative Bank officials, who, official sources said, corroborated the CEO’s claims. “Officials from the Maharashtra State Urban Cooperative Bank have stated that the bank had turned down Vaidyanath Urban Co-operative Bank Ltd bank’s deposits of Rs 10 crore and asked it to come later due to heavy influx of people and money at its branch after demonetisation,” said an official who did not wish to be named.

“The input was of unaccounted cash in demonetised currency notes being ferried by the suspects. Based on the said information, the Mumbai crime branch seized the money. However, the Vaidyanath Urban Co-operative Bank Ltd  officials ferried cash. Hence, they transported cash from Ghatkopar branch to Pune.

The official also said account books of the banks scrutinised by the investigators was “clean”. “The remittance, transactions and cash summaries of its three branches namely Beed, Pune and Mumbai were studied. It is difficult to make fake logs of such a huge amount. The money in question tabulated and accounted. They studied the accounts book.

Final Word

Out  of 3.5 crore, the sum of Rs. 1.98 crore deposited in cash. It’s the account of M/s CIIGMA Hospital Pvt Ltd, Aurangabad. “ The unknown officials brought Rs. 1.98 crore to the Vaidyanath Urban Co-operative Bank Ltd  bank.  the FIR read. However the officials investigated the money kept as safekeeping. Calls and text messages to Advani remained unanswered.

Based on the CBI case, the ED later registered a case against some bank officials and certain individuals, including the oncologist, under the stringent Prevention of Money Laundering Act (PMLA). Sources in the ED said they too will now close the case against the bank. If the predicate offence is absent. Therefore, the case under PMLA can’t probe.