I-T finds Rs 1,000 crore bogus billing by Karnataka banks

NEW DELHI: In multiple searches conducted last month on the premises of some cooperative banks in Karnataka, income tax authorities seized documents that revealed bogus billing and booking of expenditure worth Rs 1,000 crore by select clients of these banks.

The cooperative banks have been accused of assisting clients in evading tax and laundering the proceeds using cash deposits and withdrawal.

“These banks allowed opening fixed deposits by using cash deposits without adequate due diligence, and subsequently sanctioned loans using the same as collateral,” the CBDT said. These banks were involved in rampantly discounting bearer cheques issued by various business entities, in the name of many fictitious nonexisting entities, it said.
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