Press Release
New Delhi , 06.12.2016

            The Central Bureau of Investigation has registered a case U/s 120-B r/w 420 of IPC & Section 13(2) r/w 13(1)(d) of the PC Act, 1988 against Senior Manager & Branch Head, Central Bank of India, Basavanagudi Branch, Bangalore; two Directors of a private firm based at Bangalore and unknown officials of Central Bank of India & unknown others on an  information to the effect that after de-monetization announced by Government of India on 08.11.2016, officials of Central Bank of India, Basavanagudi Branch were issuing DDs to various persons by accepting de-monetized currency notes of Rs. 500/- and Rs. 1,000/-.

           It was alleged that Branch Manager, Central Bank of India during the period 15.11.2016 to 18.11.2016 has violated the guidelines of Reserve Bank of India and issued 149-DDs for amounts less than Rs. 50,000/- each in favour of a private firm based at Pune for an aggregate amount of Rs. 71,49,000/- (approx) by accepting  old de-monetized currency notes of Rs. 500/- & Rs. 1,000/-. It was further alleged that these DDs were purchased by two partners of Bangalore based private firm after depositing old currencies in cash. However, the amounts were staggered and 149 DDs were issued for amount less than 50,000/-. This was allegedly done by the accused fraudulently to convert the old demonetized notes into cash. Subsequently these DDs have been cancelled and encashed by the accused. Thereby clandestinely old notes got converted into new notes.

           Simultaneous searches have been conducted at various places across Bangalore including the residence of bank officials and private persons which led to recovery of incriminating documents including bank vouchers, counterfoils, DDs, property documents, hard disks and cash of Rs 5,91,500/- (approx) in old 500 & 1000 denominations.

           Further investigation is in progress.