Errors being rectified, says TMB on I-T spot verification

CHENNAI: Tamilnad Mercantile Bank (TMB) on Sunday said “certain deficiencies were observed” in a few specified financial transactions during the Income Tax department’s “spot verification” last week and the “errors” were being rectified. “The business operations of the bank are continuing as usual and are not impacted due to this development. We are complying with our legal obligations for disclosure from time to time,” the private sector lender said in a BSE filing.

The statement came after the intelligence and criminal investigation wing of the Income Tax (I-T) department on June 27 carried out a “spot verification” at the bank’s headquarters in Tuticorin, about 500 kilometres from Chennai. The I-T department found that the bank had not filed statements of financial transactions pertaining to cash deposits of over Rs 2,700 crore. “...we wish to inform you that during the verification, it was observed that few SFT (specified financial transactions) returns were not filed and certain errors/ deficiencies were observed in few of the filed SFT returns,” TMB said in the latest stock exchange filing.

“The returns which were to be submitted have since been submitted and the deficiencies observed are also being attended to and rectified,” the bank said. The lender also said the development will have no implication on the financial statements filed by the bank to the statutory authorities. “No financial implication on the bank is envisaged. As a law abiding organisation, we are providing all the details that are required by the Income Tax department,” TMB said.