The chairman and managing director (CMD) of the Union Bank of India (UBI) is to be questioned by the Income-Tax department in connection with deposits of about Rs 991 crore made by an alleged frontman of former Jharkhand chief minister Madhu Koda, who is at the centre of a multi-crore hawala and illegal investment scam.

Simultaneously, at least five banks where Koda and his men had opened accounts will be issued notices soon by the Enforcement Directorate (ED) asking for records in connection with its investigation in the scam, sources said on Friday.

Koda’s alleged frontman Manoj Punamia, a Mumbai-based hawala operator and an accused in the case, is absconding. Sources said UBI CMD M V Nair had been asked to appear before I-T officials at 3.30 pm on Monday at its Ranchi camp office. Nair has been summoned by the I-T department’s Mumbai office for questioning as to why the bank did not allegedly do the mandatory due diligence while accepting huge amounts.

According to the sources, Punamia had deposited more than Rs 991 crore in the UBI account of Mumbai-based Balaji Bullion Bazar in 2008 and 2009. Out of this, nearly Rs 500 crore was deposited in the account in cash, they said.

Koda is said to have been operating through Binod Sinha, Punamia and Sanjay Chaudhary who are also stakeholders in the Balaji Bullion Bazaar.

Meanwhile, the ED issued fresh summons to Koda to appear before its officials in Ranchi on November 19. The sources said Koda, who was to appear before the ED on November 15 in Delhi, had expressed his inability to do so citing forthcoming polls in the state. He is reported to have left Ranchi for Jagannathpur from where his wife Geeta Koda is contesting for the Assembly.

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