December 2nd, 2016
[Update: As per The News Minute report, IT dept said on Friday that cash in excess of Rs 6 Crores, bullion of 7 kg approximately and jewellery about 9 KG were found from the residences and offices of four Karnataka state government officers. Out of the cash found, Rs 5.7 Crores was in new currency of Rs 2000 notes and Rs 90 Lakhs has been found in the old demonetised currency.]
Income Tax department on Thursday seized found Rs 6 Crore in cash and 14 kg of gold and gold jewellery in a search against two individuals in Bengaluru. Out of 6 Crore, Rs 4.7 crore was in new currency notes, which is the biggest amount in new currency notes seized after demonetization so far. These raids were conducted at the premises of two engineers working with the state government. The search operations were carried out at their properties in Chennai, Bengaluru, and Erode.
IT department officials said they were searching the homes and offices of T N Chikkarayappa, Managing Director, Cauvery Neeravari Nigam, S C Jayachandra, Chief Project Officer, State Highway Development Project, Sibi Chakravarthy of Kannan Borewells, and Ramlingam, a civil contractor as reported by The Hindu.
As per Central Board of Direct Taxes (CBDT), the new notes and bullion were obtained by exchanging old currency as a payment of commission of an engineer and a contractor.
The tax officials are probing how the engineers were able to amass such large amount in new notes when the common people and the banks are facing a deficit.
During the investigation, identity cards of various people were found and confiscated.It is believed the transactions were carried out using these cards.
The IT department and the Enforcement Directorate with other agencies are undertaking such operations after receiving reports of instances of illegal exchange of money to perpetrate hawala and money laundering activities.
Not the first or a single incident
- Three persons were caught carrying new Rs 2000 currency notes worth Rs 71 lakh in a car without any documents at Bailoor village near Karkala on Thursday evening as per The Hindu.
- The Times of India reported that Enforcement Directorate officials raided the chamber of a well-known doctor in Salt Lake on Wednesday and recovered bundles of new notes. Their value had already crossed Rs 10 lakh by late evening and counting was still on at the time of the report.
- Police seized a sum of Rs 20.55 lakh, including 926 currency notes of Rs 2,000 denomination, from a BJP functionary during a vehicle check on Kumarasamipatti main road in Tamil Nadu late on Saturday evening as per The Hindu.
- Rs 95 lakh in new Rs 2000 notes were seized from a cab, in Hyderabad as per newsx.
Points to ponder:
- How were they able to get so much money in new denominations, when the withdrawal limit was set at Rs 24000?
- Were bank officials involved in helping these individuals?
- Has the step of demonetization really helped uncover black money and expose illegal money movement?