Free Press Journal

Axis Bank suspends 19 employees, after 2 managers arrested for money laundering


Axis Bank country’s third largest private sector lender bank suspended 19 of its officials, who are allegedly involved in “illegal activity” on Tuesday.

These officials were allegedly involved in corrupt practices in exchanging currency notes after the Centre announced the scrapping of the Rs 500 and Rs 1,000 notes.

Also Read: Tax dept seizes Rs 130-cr cash, jewellery post demonetisation

After two of Axis Bank managers Shobit Sinha and Vineet Gupta were arrested by the Enforcement Directorate, who were involved in money laundering case, Axis Bank hired the professional service company KPMG to do a forensic audit and strengthen the mechanism to prevent such activities.

The bank has suspended 19 officials, including six of the Kashmere Gate branch the two managers’ who were arrested were from this branch. On Monday the Enforcement Directorate had arrested the Axis Bank managers and seized 3 kg gold bars in connection with a money laundering probe into a racket illegally converting old notes into new in connivance with bank authorities.

Also Read: ED arrests two bank managers in money laundering probe

Currently 25 of KPMG’s auditors along with Axis Bank’s senior team are in Delhi investigating the Kashmere gate branch.

After registering a criminal complaint the agency has also found out that huge amounts of money were transferred through RTGS to shell companies, which the agency is probing further.

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