DMK demands probe into huge deposits in co-op banks

Referring to the inspections carried out by Income Tax sleuths in Central Cooperative Banks, especially in Salem and Cuddalore last week, Stalin said there were reports that these banks had been allegedly used by some ruling AIADMK leaders to convert black money post scrapping of Rs 500 and Rs 1000 notes. 

Recalling the elections conducted to cooperative societies, Stalin wondered if the ruling AIADMK had got its men elected to head the cooperative institutions only to facilitate such black money conversion. In a statement here, Stalin said the inspection at the Salem Central District Cooperative Bank, which had received the President’s award four times for best performance, has shocked the people. 

Co-operative banks had been directed not to take up any financial transactions of demonetised currency, he said adding suitable investigation should be taken up on how these banks accepted “fixed deposits in old (Rs 500 and Rs 1,000) notes.” 

He demanded that Chief Minister appoint a committee to conduct a probe into the alleged illegal deposits of scrapped notes. He wanted the Chief Minister to sack those heads of the banks found guilty of fraudulent transactions and protect the integrity of the cooperative institutions. Income Tax investigation officials have undertaken a state-wide exercise to check whether there was any illegal transfer of funds in co-operative banks following reports that a large amount of demonetised notes have been deposited in some branches of the Co-operative Banks.