Officials from the Income Tax department and the Enforcement Directorate raided the South Canara District Central Cooperative bank in Mangaluru on Tuesday following a tip-off about unusual monetary transaction. As part of their crackdown on cooperative banks that have seen sudden surge in deposits post demonetisation, raids were carried out in a joint operation by the ED and IT.
Six officials from the Income Tax department and three from enforcement directorate scrutinised documents available in the bank to check deposits made after November 8. The district cooperative bank's office in Kodiyal in Mangaluru was raided for hours and documents seized.
Over the last one week, cooperative banks in Karnataka have come under the central agencies' radar on allegations of undocumented deposits. Officials suspect that the banks have allowed illegal deposit of black money in a bid to legalise the same. Cooperative banks receive money from cooperative societies that do not fulfill KYC norms. Officials suspect that this loophole in the system is being misused to launder money.
Raids are expected to continue in more cooperative banks. Bank officials are being asked to provide detailed information of customers who have deposited high amounts post demonetisation move.