I-T wing uncovers wilful default by TN co-op bank

Chennai The Income Tax department has unearthed a "willful default" by a Tamil Nadu-based cooperative bank causing losses to the exchequer of several crore rupees, sources said on Friday.

According to the department's Intelligence and Criminal Investigation wing, financial institutions, banks, and cooperative banks are supposed to inform the department of cash deposits and interest paid to customers in the form of a Statement of Financial Transactions (SFT). However, the cooperative bank in Pudukottai district was not sending the details of the interest paid to customers, based on the deposits for the last four years, sources said. "In this case, the bank did not disclose the interest paid to the customers. It has come to our notice that there may be a loss of about Rs 1.5 crore every year." they said.

A 10-member team of the department along with police personnel then conducted a survey on Thursday.