IndusInd Bank says ED investigating some entities, a few employees for financial irregularity - Moneycontrol

There is no credit exposure of the bank to these entities, the lender said.

The bank had suo moto filed Suspicious Transaction Reports (STRs) with the regulatory authorities during the relevant period for many of these entities.

Private sector lender, IndusInd Bank on July 13 said, the Enforcement Directorate has lodged an investigation against certain entities and some bank employees in connection with financial irregularities.

A First Information Report (FIR) was filed on July 9, 2022, with Chennai Police against some of those entities and a few employees of the bank, the lender said in an exchange note.

There is no credit exposure of the bank to these entities, the lender said.

The alleged remittance transaction fraud took place between 2011-2014.

"The Directorate of Enforcement...has been investigating a few entities inter alia for certain alleged irregularities in remittances for import transactions conducted during the year 2011 to 2014," the bank said.

"As part of the investigation, the ED has filed a First Information Report (FIR) dated July 9, 2022, with Chennai CCB-1 Police Station against some of those entities and few employees of the Bank, most of whom have already separated from the Bank. A complete copy of the FIR along with the annexure is being retrieved. There is no credit exposure of the Bank to these entities," it added.

The bank had suo moto filed Suspicious Transaction Reports (STRs) with the regulatory authorities during the relevant period for many of these entities.

That apart, the bank had filed complaints with the police authorities in 2015 against some of unscrupulous entities. Incidentally, the matter was subject to scrutiny by the RBl in October 2015 and a penalty was levied on the bank which was intimated to the stock exchanges vide the Bank's letter dated July 28, 2016, the note said.

“The Bank continues to extend full cooperation and assistance to the Law Enforcement Agencies and is duty-bound to take appropriate action against any of the named employees if found to have deliberately facilitated/abetted the conduct of any illegitimate transaction,” the communication said.

Moneycontrol News

Adblock test (Why?)

IndusInd Bank says ED investigating some entities, a few employees for financial irregularity - Moneycontrol
Read More