TMB failed to file details of Rs 3,610 cr deals due to tech glitch: sources

The bank has now submitted all the required documents, may not invite any penalty

After the income tax department indicated that the Tamilnad Mercantile Bank (TMB) did not provide the complete details of transactions worth up to Rs 3,610 crore, sources told Business Standard that this was due to a technical glitch. The bank has now submitted all the required documents in the past few days.

According to the Income Tax (I-T) department, TMB had not submitted a statement of financial transactions (SFT) pertaining to cash deposits of around Rs 2,700 crore involving more than 10,000 accounts. Officials had also highlighted inconsistencies in specific credit card payments involving total transactions worth Rs 110 crore, dividend distribution of more than Rs 200 crore, and shares issued for more than Rs 600 crore.

“Banks have to report these SFT transactions at periodical intervals to the I-T. The bank had done all the required filings, but this was not updated in the portal due to some unintentional technical error. It was not a wilful omission,” said a source aware about the development. Sources indicate this may not to lead to any penalty on the bank, as even if the omissions are wilful the penalty is likely to be in the range of Rs 50,000 only.

The I-T Department conducted a surprise raid on the Thoothukudi-based bank’s offices on June 27-28. The department said several large transactions, including interest payments of over Rs 500 crore, time deposits, cash deposits, and withdrawals from current accounts, were not reported by the bank. In addition, Form 61B, which gives information about account holders residing in other countries were also reportedly filed incorrectly. “The department reviewed all the transactions of the last three years starting 2020-21. The bank now corrected the technical error and uploaded required documents,” he said.