Axis Bank suspends 19 officials; Hires KPMG for forensic audit

Axis Bank on Tuesday said it has suspended its 19 officials allegedly involved in illegal activity post demonetisation.

Following arrest of two of its managers in Delhi by Enforcement Directorate in connection with money laundering probe, Axis Bank has hired KPMG to do forensic audit and strengthen mechanism to put check on such activities.

The bank has suspended 19 officials including 6 of Kashmere Gate branch of Delhi itself, Axis Bank executive director Rajesh Dahiya said.  


"Post demonetisation, bank is working round the clock to enhance its processes so that rules are adhered to. As many as 125 senior level official are monitoring activities across the country," he said.

The bank is going to ruthless if it comes across any malpractice by anyone, he said.

Yesterday, the Enforcement Directorate arrested two Axis Bank managers here and seized 3 kg gold bars in connection with its money laundering probe in a racket of illegally converting old notes in connivance with banking authorities.

The agency's probe till now, after it registered a criminal complaint under the Prevention of Money Laundering Act (PMLA) on November 30, found that huge monies were transferred through RTGS transfers to some shell companies including a case where the Director of such a firm was a "petty labourer."

The agency identified the two managers as Shobit Sinha and Vineet Gupta, working at Axis bank's Kashmere Gate branch, and said they were arrested late yesterday under the provisions of PMLA.

The case was first detected by the Delhi Police after it intercepted three people with cash of about Rs 3.7 crore in old notes, in front of the said Axis Bank branch last month, and the ED took cognisance of the police FIR to slap money laundering charges against the accused.

The Income Tax department too had carried out its action in this case and had surveyed the bank branch and later searched the residential premises of the duo. #casansaar (PTI - NDTV Profit)