Massive Rs 1,100 Crore Unreported Cash Unearthed in Gadchiroli Cooperative Bank
In a startling revelation, the Income Tax Department has discovered that over Rs 1,100 crore, predominantly in cash, was parked in the Gadchiroli District Central Cooperative Bank over a five-year period without being reported to tax authorities. This substantial sum, found in the bank located in the once Maoist-affected district, has taken tax officials by surprise, prompting multiple searches conducted on Wednesday.
Unreported Deposits Nearly Match Bank's Total Holdings
Sources indicate that the unreported amount is nearly equivalent to the total deposits currently held by the Gadchiroli bank. The department's intelligence and criminal investigation wing is executing a series of searches across cooperative banks in the region, targeting deposits that were not disclosed under the Statement of Financial Transactions (SFT) framework.
Breakdown of Unreported Funds
The scrutiny revealed specific categories of unreported deposits:
- Current Accounts: Cash deposits totaling Rs 300 crore were identified, including numerous instances where deposits exceeded Rs 50 lakh each, all omitted from SFT reports.
- Savings Accounts: An additional Rs 600 crore was found unreported in savings accounts, with cash deposits of Rs 10 lakh or more per account.
- Term Deposits: Tax authorities also uncovered Rs 200 crore in unreported term deposits.
As the investigation covered deposits from the last five years, sources noted that a significant portion of these funds had been withdrawn over time, complicating the audit trail.
SFT Reporting Requirements and Broader Probe
Under current regulations, cash deposits of Rs 50 lakh or more in current accounts and Rs 10 lakh or more in savings accounts must be reported via SFT. Additionally, fresh deposits of Rs 10 lakh or more, even if made by cheque, require disclosure. The purpose of SFT reporting by entities such as banks, mutual funds, jewellers, and property registrars is to cross-check income declared in Income Tax returns, ensuring transparency and compliance.
This case is part of a larger drive by tax officials to examine accounts in cooperative banks across the region. So far, unreported deposits worth approximately Rs 10,000 crore have been identified in around seven banks, highlighting systemic issues in financial reporting and compliance within the cooperative banking sector.
