Koda scam: Union Bank under ED scanner - India News and Travel Times Provides India-centric and other News and Features

The Enforcement Directorate (ED) today issued notice to the manager of Union Bank in connection with the Madhu Koda scam. The manager employed at Union Bank's Zaveri Bazaar branch in Mumbai, has been asked to appear before the ED today or by 2 p.m. tomorrow. Koda's front companies are said to have deposited Rs 640 crores between November 2006 and December 2008. The bank has come under scanner for failing to alert the financial intelligence unit of these transactions. The ED will ask the official to give details on whether all rules were followed before accepting such a huge deposit. The ED will also ask the official if he had informed the establishment about the transaction. Reserve Bank of India (RBI) rules direct banks to authenticate the identity of the depositor and the source of the funds. On Tuesday, a team of investigators spent the whole day at the residence of Koda, a former Chief Minister of Jharkhand, sifting through his papers and questioning him after he got discharged from the Apollo Hospital in Ranchi. Koda is being accused of being involved in hawala transactions and making illegal investments.