Remittance scam: IndusInd Bank says already reported irregularities

Private sector lender IndusInd Bank on Wednesday clarified reports of media speculation relating to an old investigation pertaining to remittance transactions from 2011 to 2014 by the Enforcement Directorate (ED).

The scam dates back to 2015 when the ED unearthed a Rs 15,000 crore foreign remittance scam. The scam involved importers depositing fake bills of entries (of imports) in banks and remittances are made to unknown people outside India.

In a clarification, IndusInd Bank said, "ED's Chennai Zonal Office has been investigating a few entities inter alia for certain alleged irregularities in remittances for import transactions conducted during the year 2011 to 2014."

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The bank said it had suo moto filed Suspicious Transaction Reports (STRs) with the regulatory authorities during the relevant period for many of these entities and also filed complaints with the police authorities in 2015 against some of the unscrupulous entities.

However, the Reserve Bank of India (RBI) in October 2015 levied a penalty on the bank, which was intimated to the stock exchanges through a letter dated July 28, 2016.

Further, 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 a few employees of the bank, most of whom have already separated from the bank.

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But there is no credit exposure of the bank to these entities, it added.

"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 bank said.

Shares of IndusInd Bank ended at Rs 817.75, down by Rs 28.95, or 3.42 percent on the BSE.