New Delhi, Dec 15 (IANS) The multi-crore money laundering scam involving former Jharkhand chief minister Madhu Koda figured in parliament Tuesday with the government admitting to deficiencies in a state-owned bank that reported huge deposits by two companies involved in the scam.

"The RBI (Reserve Bank of India) has found defects of a technical nature," Finance Minister Pranab Mukherjee said during question hour in the Rajya Sabha.

Asked about the status of investigations into the deposits made by the two companies - Balaji Universal Trade and Balaji Bullion - in the Union Bank of India, Mukherjee said: "It is not possible to disclose the entire scope of investigations in the house. This is still on."

"In the interest of the investigations and to take them to their logical conclusion, I can't disclose anything. This will be done in the courts," the minister added.

During the two-year period that Koda was Jharkhand's chief minister, several of his close associates like Binod Sinha, Arvind Vyas, Sanjay Chaudhary, became board members of Balaji Universal Trade and Balaji Bullion - allegedly front companies to park illegal funds - by acquiring a major stake in them. Investigators suspect that fake invoices could have been made to route the multi-crore hawala money.

Asked to comment on the Union Bank of India stating that it had not done any wrong and that the entire episode was only a "media storm", Mukherjee retorted: "Unless the entire investigation is over, it is not possible to give a complete answer."

Asked about the corrective measures that have been taken after the Balaji issue came to light, the minister said: "This is a constant exercise."