After Bank of Baroda, it is another bank under the scanner of Enforcement Directorate (ED) involved in an alleged money laundering case. ED has reportedly traced black money laundering worth Rs 500 crore at Oriental Bank of Commerce (OBC), reports Zee News.
The bank is alleged to have transferred funds to Hong Kong following which ED has detained two people from whose details are still awaited, according to Zee Media.
Last week, CBI and the Enforcement Directorate started investigation on the matter. It is alleged that Rs 6,172 crore black money was remitted from Bank of Baroda to Hong Kong camouflaged as payments for non-existent imports like cashew, pulses and rice.
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It is also alleged that the amount was deposited in 59 accounts of the bank's Ashok Vihar branch (New Delhi) in cash as advance for import and the money was sent to some select companies in Hong Kong.
The branch opened 59 current accounts during May 2014 to June 2015 through which large foreign exchange remittances were done, the bank said in a regulatory filing.
Related Read: Bank of Baroda case: SFIO starts probe into the Rs 6,100 crore money laundering case
During this one year, a total of 5,853 outward foreign remittances aggregating $546.10 million (around Rs 3,500 crore) were made through 38 current accounts to various overseas parties numbering some 400, mainly based in Hong Kong and one in the UAE.
The bank has admitted that the branch did not adhere to FEMA (Foreign Exchange Management Act) guidelines.
Related Read: Bank of Baroda case: Fake fronts for laundering spread from New Delhi to Mexico City
As many as six persons including two officials of Bank of Baroda -- S K Garg and Jainish Dubey -- have been arrested in this case for criminal conspiracy, cheating and provisions of the Prevention of Corruption Act.
Garg was AGM while Dubey headed the foreign exchange division at BoB's branch in Ashok Vihar.
