Bank of Baroda fraudsters made over Rs100-cr from Rs6,000-cr remittance racket

The CBI investigation into over Rs6,000 crore transfer (about $1 billion) to Hong Kong and Dubai through bank of Baroda's Ashok Vihar branch in Delhi has indicated that the operators have made illegal gains of over Rs100 crore, by charging a premium of Rs1.35 per dollar for remitting the funds overseas .

The parties at the other end of the scam, in Hong Kong and Dubai to whom the money was allegedly being transferred, might have made over Rs35-60 lakh in commission from the operation, according to CBI.

CBI had registered a case against 59 current account holders and unknown bank officials and private persons on a complaint from Bank of Baroda.

The CBI is expected to submit the report to the finance ministry and banking sector regulator Reserve Bank of India (RBI), sources said.

State-run lender Bank of Baroda has ignored mass scale unlawful foreign exchange transactions to Hong Kong and Dubai by some businessmen for nearly one year, it was found.

CBI is reported to have stated in its chargesheet that the masterminds of the racket have allegedly distributed fee of Rs1.35 per dollar among themselves with even the lowest rung of the gang (which were alleged account holders) making Rs25-40 lakh in one year period from July 2014-July 2015.

"The lower rung of the gang was given 20-25 paisa per dollar transferred and during the one-year period they have made about Rs 25-40 lakh by transferring funds through banking channels," reports quoted an official as saying.