Police did not name bank linked to Jayant, but ED smelt a rat during inquiry

MUMBAI: The money laundering case as part of whose probe the ED on Friday searched, among other places, the office of the Rajarambapu Sahakari Bank Ltd (RSBL) is based on a complaint filed by the goods and service tax department with police in 2011 relating to fraudulent claims of value-added tax.

The CA would allegedly show that he had sold raw material to the companies by providing fake bills and invoices to them in the name of his shell firms. The companies would allegedly transfer the money through RTGS into the shell company accounts in RSBL. The CA would then return the money to the companies in cash after deducting his commission.

"In some instances, Rs 30 crore was withdrawn in cash, which was highly suspicious and also flouted the guidelines," an ED source said. "The ED suspects the involvement of bank management in these suspicious transactions, so the agency decided to search the bank premises also."

People in the ED said in the 2011 the bank was not named as an accused in the police case. However, during its investigations the ED found evidence indicating the bank's role in facilitating the opening of shell company accounts and enabling suspicious transactions. The agency had recorded statements of people connected to these transactions and dummy directors of the shell companies.


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