Accounts With Canbank Frozen

identity.

The accounts are believed to be in gross violation of the Foreign Exchange Regulation Act.

When contacted by Business Standard, an official spokesman of Shaw Wallace & Company said: "We have not heard of any information on freezing of the accounts, but after various developments there is a reassessment of the account itself, so that it is not being operated."

Earlier, the Income-Tax department authorities had identified the Hare Street branch, near SWC headquarters Wallace House, of Canara

Bank through which such transactions worth Rs 100 crore were made by the Manu Chhabria-controlled liquor major and all of its associate companies.

 

The other banks identified included ANZ Grindlays, Syndicate Bank and Hongkong Bank, which has now parted ways with the beleaguered company.

Canara Bank is, however, not in the consortium of Shaw Wallace's lending banks, which include State Bank of India, ANZ Grindlays, Stanchart, Andhra Bank, Union Bank, Federal Bank and Allahabad Bank, the lead banker.

The Enforcement Directorate had directed Allahabad Bank to share the details of the sticky transactions.

In an attempt to stall any further diversion of funds to Shaw Wallace's associate companies, the company's bankers had earlier directed the organisation to immediately close all its current accounts lying with the non-consortium banks.