The Mumbai wing of the Enforcement Directorate (ED) will soon seek details from Axis Bank NSE 1.20 %

The Mumbai wing of the Enforcement Directorate (ED) will soon seek details from Axis Bank NSE 1.20 % as part of the probe into an Rs 2,000-crore hawala trick fixated on an Ahmednagar-based urban credit agreeable society. The society had its account with the private bank. The central agency will seek to know if the bank verified KYC details of the credit society if there were any transaction of suspicious nature, and whether any alerts were raised and the accounts into which monies were credited were checked, sources familiar with the development told ET. The case relates to the predicate offense enlisted by the Mumbai Police against Yogeshwar Diamonds Pvt Ltd, Charbhuja Diamonds Pvt Ltd and Kanika Gems Pvt Ltd for allegedly routing Rs 2,000 crore abroad through shell organizations by submitting forged bills with IndusInd BankNSE 1.88 % (Opera House branch). Following this, the ED enrolled an Enforcement Case Information Report (ECIR) and a week ago captured Machindra Khade, a previous administrator with the Nagpur part of the Renukamata Multistate Cooperative Urban Credit Society on the claims of washing Rs 120 crores. The scam including the Mumbai organizations is evaluated to be worth Rs 2,000 crore.

The society registered under the Multistate Co-agent Societies (MSCS) Act 2002 is headquartered in Ahmednagar, Maharashtra. The society got the permit to stretch out its territory of activity to Gujarat, Madhya Pradesh, Andhra Pradesh, Karnataka and Delhi in December 2012. Sources said the society flouted mocked MSCS standards. "This identifies with an examination being led by ED into exchanges completed by the alluded credit society over a few banks. In accordance with the surviving administrative rules, the bank has been checking the movement in these records and has documented the required administrative reports as far back as in 2011-12.

We neither have any exposure to the said element nor were any forex outward settlements produced using these records by the bank. The bank has been working intimately with the specialists worried on this issue and will completely coordinate with them in such a manner," an Axis Bank representative said when ET sought comment on the case. Calls and messages sent to Renukamata Multistate Co-operative Urban Credit Society didn't evoke a reaction.