23 November 2015

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In Depth Bank of Baroda Rs.6000 Cr. Black Money Scam

In Depth Bank of Baroda Rs.6000 Cr. Black Money Scam

Below is the classic example of turning black money into white money this is happening in India since 1950.

Do the fake transactions and convert the black money into white money and its done.

No punishments and nothing.

The Central Bureau of Investigation and Enforcement Directorate, probing one of the biggest trade based money laundering, also being referred to as 'banking-hawala scandal'.

The Central Bureau of Investigation and Enforcement Directorate found that low-income citizens were used by the exporters/importers to send their ill-gotten money to the foreign countries.

The parties to the Scam –
Bank and officials –
Bank of Baroda Ashok Vihar branch's two officials - assistant general manager SK Garg and Jainish Dubey, head of foreign exchange division
Both are arrested by CBI

The ED also arrested Kamal Kalra who works with the foreign exchange division of HDFC Bank.

According to ED, Kalra said during questioning that he had helped Bhatia and Aggarwal in remitting part of the over Rs 6,000 crore through Bank of Baroda on a commission of 30-50 paise per dollar sent abroad through banking channels 

Names of Businessmen –
Gurcharan Singh, Chandan Bhatia, Gurucharan Singh, Sanjay Aggarwal and many others

Poor Indian Citizens -
Currently 59 citizens are involved in this case

How money laundering scam happened?

Poor citizens were made directors in 59 fake companies in Bank of Baroda

They were paid Rs. 10,000 per month for lending their documents like Voters Id, Ration Card

On the basis of voter IDs, their PAN cards were got prepared by the accused persons and then current accounts were opened in the BoB branch in the name of fake companies.

Using this fake bank accounts black money was sent to shell companies in Hong Kong

Rs. 6172 Crore was deposited in 59 accounts between August 2014 and August 2015, mostly as forex remittances and transfers through other banks.

The imports of dry fruits, pulses and rice were shown to be done in these 59 companies having accounts in BoB but no imports had been done actually.

Bhatia and Aggarwal were instrumental in setting up such shell companies.
Bhatia worked in close cooperation with exporter Gurucharan Singh Dhawan even as he used his own export companies to send money abroad. Bhatia was alleged to have sent Rs 420 crore through BoB in this manner

ED officials told to media that Aggarwal too had formed firms in India to send foreign remittance in advance from BoB in lieu of non-existent imports. “He had formed companies in Hong Kong and Dubai with controls in his hand, so as to transfer required amounts in the bank account of importers. During this period, he had sent foreign remittances worth Rs 430 crore through BoB

Gurucharan Singh is the exporter of finished goods like readymade garments, fabric etc. and used to get the duty draw back on the exports made from his firm Dhawan Creative Prints Pvt. Ltd., CK Clothing, JS Hosiery. He was the main person since he used to get the draw back on the exported goods on the basis of overvalued exports. This amount of drawback received from the Govt. was used to distribute commission at various stages

The accused floated shell companies in India and Hong Kong. The Indian companies exported overvalued products by generating fake bills and the Hong Kong companies submitted fake import bills to claim duty drawback. The difference in the bills and actual value was moved through banking channels

As per media reports 'entry operators' found in Old Delhi area, mostly Chandni Chowk, were approached by exporters/importers to transfer cash in these 59 current accounts.
The entry operators provide fake purchase invoices to the tune of 3 to 4 times of the actual value of the items.

They are paid money through different channels, on commission basis, through cash and then the operators put that money in several bank accounts owned by them.

The money is then transferred to the Bank of Baroda accounts in smaller amounts through different banks.

This way black money gets converted into white money without any punishment to bank or anyone.

Reality views by sm –

Monday, November 23, 2015

Tags – Black Money Bank of Baroda Explained Facts Names


JAMSHED AZMI November 23, 2015  

Oh.........this is very bad news for us.