NEW DELHI -- The Enforcement Directorate on Wednesday morning arrested a manager of the Kotak Mahindra Bank for his alleged links with hawala trader Parasmal Lodha and Delhi-based lawyer Rohit Tandon.
Sources in the ED said that branch manager Ashish Kumar was arrested for allegedly converting over ₹25 crore in demonetised notes linked to industrialist J. Sekhar Reddy and lawyer Rohit Tandon.
On 23 December, the Income Tax Department also carried out raids at the bank branch here.
Ashish, a resident of Haryana, would be presented before a Delhi court on Wednesday afternoon.
Lodha, a leading businessman with interests in real estate and mining, was intercepted at the Mumbai airport while he was trying to flee to Malaysia.
Kotak Mahindra Bank on Wednesday said, "With reference to the ongoing investigation of the said accounts, Kotak Mahindra Bank had proactively informed Financial Intelligence Unit (FIU) and the bank has already suspended the services of its employee, Ashish Kumar."
"The bank has zero tolerance towards employees not adhering to its code of conduct, and takes strict measures against them. The bank confirms that it has a robust system of regularly and proactively filing necessary reports with the FIU for all large transactions," Kotak Mahindra Bank said in a statement.
The bank said it has on record all necessary KYC documents, including PAN card numbers.
On observing the nature of transactions in these accounts, Kotak Mahindra Bank had filed a report with the FIU for further investigations.
On subsequent investigation by the authorities, the bank, as per their instructions, has deposited the entire amount that was credited in these accounts with the Income Tax Dpartment, the statement said.
"As can be seen from the bank's actions, it has fully cooperated and communicated with the relevant authorities, and has demonstrated the highest standards of compliance, and it will continue to do so," Kotak Mahindra Bank spokesperson Rohit Rao said.
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