CBI arrests businessman over post-demonetisation cash deposits

The CBI today arrested an absconding businessman for allegedly depositing Rs 1.49 crore in demonetised banknotes of Rs 1,000 and Rs 500 in his firm's dormant account between November 22 and December 13 last year when restrictions on cash deposit were in place.
Viral C Shah, the proprietor of Parshwanath Motors in Ahmedabad, had been absconding since a case was registered against him on April 7 this year, a CBI spokesperson said here.
He said a look-out circular was also issued against him.
"The accused was spotted at the Ahmedabad international airport when he was returning from the USA and was arrested later," the spokesperson said.

It is alleged that Shah, in conspiracy with the then Manager and Assistant Branch Head of UCO Bank, St Xavier's Branch, Navrangpura, Ahmedabad, and other unidentified persons, deposited Rs 1,000 and Rs 500 banknotes which were withdrawn from circulation on November 8, 2016, amounting to Rs 1.49 crore in the current account of his firm.
The account had been lying dormant for nearly three-and- a-half years prior to that, the FIR alleged.

It is alleged that branch manger Bhaskar R Soni, while accepting huge amounts of demonetised banknotes, did not obtain mandatory documents from Shah to establish the identity of the firm and to justify such deposits after a long gap.

Soni intentionally did not carry out due diligence as per the directives of the Reserve Bank of India, the CBI alleged.
The agency has alleged that Shah deposited the currency notes to the tune of Rs 1.49 crore in a dormant account and brought the unaccounted money in the banking channel which was further transferred to other accounts by way of RTGS and NEFT.