Caught Red-Handed Trying To Convert Black Into White
Income Tax department uncovers new ways of converting black money to white.
Many in India will tell you that the answer to some of the world’s most complex problems is ‘jugaad’. It turns out this is exactly how some Indians are converting their unaccounted wealth into white money.
Investigations conducted by the income tax department have revealed several money-laundering networks that are spreading across the country, helping people turn their cash hoards into legal tender, ever since the government demonetised old Rs 500 and Rs 1,000 currency notes.
In the course of one such investigation in Nagpur, a surprised account holder was informed that Rs 3.29 crore had been deposited into her account after November 8.
Enquiries by the (income tax) department revealed 6 more such accounts in her and (her) parents’ names. The 7 accounts were opened and operated by unknown persons to launder cash of Rs 4.25 crore.Press Information Bureau Statement
The department uncovered evidence suggesting that the woman’s permanent account number and other personal documents, which she had handed over to a friend, had been used to open accounts in Kolkata. These accounts were then used to channel funds to eight beneficiaries, who are now being investigated, according to PIB's media statement.
A separate investigation in Mumbai revealed a syndicate that was converting black money into white for a commission. The income tax department found that the syndicate was being run with the help of a large number of operators on the ground, and was taking a commission of 35 percent to exchange currency.
“The ground level operators would withdraw new currency in their own names or names of friends and family within the prescribed weekly limits, pass it on to the aggregator for a commission and deposit the old notes in their own accounts or accounts of family or friends in small sums,” the PIB statement said.
In this case, a total of Rs 29.5 lakh was seized.
In Ahmedabad, a fleet operator who was ostensibly transporting firecrackers to New Delhi, was found preparing to transport cash instead.
Of the 24 crates that were being transported, two contained Rs 100 currency notes worth Rs 27 lakh, which was seized by income tax officials.
Since the central government announced the demonetisation, banks have collected a total of Rs 11.5 lakh crore in old bank notes out of the Rs 14.1 lakh crore that was in circulation.