Demonetisation: Top 5 ways in which mischief-makers tried to hoodwink Narendra Modi government

Following Prime Minister Narendra Modi's announcement of much-debated move to demonetise Rs 500, 1000, reports of adopting unfair means to convert old notes have made headlines.

By: FE Online | New Delhi | Updated: December 5, 2016 10:55 AM

Following Prime Minister Narendra Modi’s announcement of much-debated move to demonetise Rs 500, Rs 1000, reports of adopting unfair means to convert old notes have made headlines. PM Narendra Modi has been constantly pitching for the pro-people and benefits of them move but several mischievous minds across the country had other ideas. They are coming up with innovative ways to outwit government and help others convert black money into white. Several raids conducted by the law enforcement agencies have revealed shocking details. These elements were carrying out such acts under the garb of legal entities. Tax surveys and raids across the country has found that illegal conversion of old Rs 500 and Rs 1,000 notes into valid legal tender is not just limited to bullion dealers and hawala operators. From dental implant equipment suppliers to civil contractors and real estate firms, many were adopting innovative methods to illegally convert abolished notes to legal tender. Here are the top five ways that these perpetrators were using.

1. A few days before the government stopped over-the-counter exchange of currency notes of Rs 500 and Rs 1,000, officers of the income-tax department raided a caterer in Mumbai and recovered over Rs 80 lakh in new notes and over Rs 40 lakh in withdrawn notes. During the probe, they found that the caterer had outsourced the job of converting the alleged unaccounted old currency notes of his clients to a tiffin-service provider. It was learned that the tiffin-service owner had, in turn, put his 60-odd delivery men in queues outside multiple banks for exchanging notes. Each delivery man used to exchange old notes over the counter multiple times at different banks in the city from morning to evening, an Indian Express report said.

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2. Among the instances unearthed by I-T officials of people trying to beat the system was the seizure of over Rs 60 lakh from a dental implant equipment supplier, who allegedly accepted abolished currency notes by giving backdated receipts of sale of dental equipment to doctors, said sources.

3. The tax authority has booked at least two cases involving prominent real estate firms who have accepted old currency from high net worth individuals by backdating sale of flats to before November 8.

4. Electronic equipment sellers have also come under the scanner as the agency found that several dealers have accepted cash from clients and declared it as excess cash in hand in their accounts.

5. There is also the case being probed of the chief executive of a civil contractor who was caught at the Mumbai airport with over Rs 65 lakh in old currency. The agency has now raided the offices of the contractor across Mumbai. Last week, tax officials also seized Rs 70 lakh from a salaried employee of a top Indian software firm who was travelling by air from Lucknow to Mumbai. Sources said investigations in both these cases are underway to identify the source of the money.