The Bank of Baroda ₹6,000 Crore Hong Kong Forex Scam

“Outward remittances for import payments will be made only against genuine underlying trade transactions, in compliance with the Foreign Exchange Management Act and RBI's know-your-customer and anti-money-laundering norms.”

— Bank of Baroda, a majority government-owned public sector bank, Authorised dealer bank processing foreign exchange remittances for its account holders · 1 August 2014

This reflects the standard regulatory obligation on an RBI-authorised dealer bank processing forex remittances, rather than a specific internal Bank of Baroda policy document this entry has reviewed.

Foreign exchange remittances processed by the bank's branches would correspond to genuine, verifiable underlying imports, with due diligence performed on account holders and transaction documentation as required under Indian foreign exchange and anti-money-laundering law.

Foreign Exchange Management Act, 1999, and RBI's know-your-customer/anti-money-laundering directions for authorised dealer banks.

In force from 1 August 2014

Between roughly August 2014 and August 2015, Bank of Baroda's Ashok Vihar branch in Delhi — a branch that had only received forex-dealing authorisation in 2013 — processed close to 8,000 remittances totalling around ₹6,172 crore to some 400 overseas parties, mostly in Hong Kong, purportedly as payment for imports of cashew, pulses and rice that investigators allege never took place. The branch's forex business had ballooned to roughly ₹21,529 crore within a year of receiving that authorisation. The CBI registered a case in October 2015 and arrested the branch head, an assistant general manager, and the branch's forex-desk officer, along with several current-account holders; the Enforcement Directorate opened a parallel money-laundering case and the Serious Fraud Investigation Office (SFIO) also began a probe. India's Financial Intelligence Unit separately penalised Bank of Baroda for anti-money-laundering lapses connected to the case. The CBI has since filed multiple supplementary chargesheets — including two in December 2021 against eight individuals and a private company — and as of the most recent reporting reviewed, the matter remains under trial in special CBI and PMLA courts, with no final verdict reported.

As of 1 June 2025

1. 1 Jan 2013Status
   Ashok Vihar branch authorised for forex dealing

   The Delhi branch receives permission to handle foreign exchange transactions; its forex business grows rapidly within a year.

2. 10 Oct 2015Milestone
   CBI registers case, conducts raids

   The CBI books Bank of Baroda officials and account holders over roughly ₹6,000 crore in suspicious remittances to Hong Kong and other jurisdictions.

3. 22 Oct 2015Status
   CVC seeks report from CBI and bank

   The Central Vigilance Commission asks for a status report on the investigation.

4. 25 Dec 2021Milestone
   CBI files two supplementary chargesheets

   Chargesheets are filed against eight individuals and a private company in connection with the scam.

5. 1 Jun 2025Status
   Trial ongoing

   As of the most recent reporting reviewed, the case remains under trial in special CBI and PMLA courts with no final verdict.

This is a stub entry. Multiple accused, including bank officials and account holders, were arrested and chargesheeted across CBI and ED proceedings; this investigation has not established a final trial verdict for any accused.

• This is a stub entry. The current trial status and final disposition, if any, for each named accused has not been established.
• The exact FIU penalty amount and date against Bank of Baroda for related anti-money-laundering lapses has not been independently confirmed.
• It is not established what portion, if any, of the alleged ₹6,172 crore has been recovered or frozen.