The Income Tax Department has unearthed money laundering in the form of old high denominations notes being converted into gold bullion to the tune of Rs 100 crore in Hyderabad. Senior IT officials informed that a reputed jeweller in the Banjara Hills area was surveyed by the Department to unearth the conversion of black money into gold bullion.
It was found that the jeweller has shown to have received advances below Rs 2 lakh in old high denomination notes from about 5000 customers amounting more than Rs 100 Crore between 9 PM to mid night immediately after announcement of demonetisation on 8th of last month.
However, the 5000 customers found fictitious as the jeweller did not take any proof of address like PAN, phone numbers and bypassed KYC norms by splitting the bills into smaller bills. On verification, the department found that the jeweller deposited Rs 100 crore in old high denomination notes during the next one week while it had no much sales prior to demonetisation.
The investigation also revealed that the CCTV footage shows that the shop was closed at 8 PM on November 8th. The Enforcement Directorate has been informed to take appropriate action under Prevention of Money Laundering (PMLA), besides the penal consequences under Income tax Act/Benami Properties (Prohibitions) Act. The investigation is in progress.
Meanwhile, the Information and Broadcasting Minister M Venkaiah Naidu has cautioned that the government will not spare those who have acquired huge quantities of Jewellery in post demonetisation period.
Speaking in Hyderabad last evening, he categorically said that no tax will be imposed on jewellery or gold purchased out of disclosed income and acquired from ancestral source. He assured that people should not worry over the jewellery or gold, if it is ancestral, legitimate and is purchased from disclosed income.