Income Tax finds Rs.1000 crore Bogus Billing cases by Karnataka Banks:

Income Tax finds Rs.1000 crore Bogus Billing cases by Karnataka Banks Income tax authorities discovered documents revealing fake invoicing and booking of expenditure worth Rs 1,000 crore by chosen clientele of these cooperative banks during several raids conducted last month on the premises of some cooperative banks in Karnataka. The cooperative banks have been accused of aiding clients in tax evasion and laundering proceeds through cash deposits and withdrawals. "These banks permitted the opening of fixed deposits using cash deposits without adequate due diligence, and then sanctioned loans using the same as collateral," the CBDT stated. It claimed that these banks were rampantly discounting bearer cheques produced by various business companies in the names of several bogus nonexistent entities.