New Delhi, February 7, 2017

Sends 5,100 verification notices on cash deposits

Springing into action against black money hoarders post demonetisation, the tax authorities have detected over Rs.5,400 crore in undisclosed income and have also issued over 5,100 notices for verification of cash deposits in banks accounts during the 52-day period.

The Income-Tax department has also conducted over 1,100 searches, seizure and survey operations that led to seizure of valuables of more than Rs.610 crore including cash of Rs.513 crore.

Sharing these details, Minister of State of Finance Santosh Kumar Gangwar responded to a question in the Rajya Sabha on Tuesday and said, “New currency of more than Rs.110 crore is part of the cash seizure.”

He further said verification notices have been sent in cases where the cash deposits did not appear to be in line with the profile of account holders. “Such bank accounts included Jan Dhan accounts,” the Minister said.

The government has also referred some cases to the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) for necessary action.
Bank staff suspended

Responding to another query, Gangwar said the ED has also found instances where banks employees indulged in money laundering after the note ban and nearly 170 officials belonging to public and private sector banks have been suspended.

“Public sector banks are so far reported to have placed 156 officials under suspension and to have transferred 41 officials,” he said, adding that the state-run lenders are also reported to have criminal filed 26 cases with the police and CBI.

“Regarding private banks, the Reserve Bank of India (RBI) has informed that 11 employees have been placed under suspension where bank employees have been found involved in ‘irregular exchange of transaction’ of notes during the phase of demonetisation,” Gangwar said, adding that the banks are also understood to have initiated internal investigations and filed complaints with the police and the CBI.

Prime Minister Narendra Modi had on November 8 announced an almost immediate withdrawal of the old series Rs.500 and Rs.1,000 notes, which amounted to 86 per cent of the currency in circulation at the time.

By December 10, the defunct notes amounting to Rs.12.44 lakh crore were returned to currency chests of the RBI, said MoS Finance Arjun Ram Meghwal in response to another query in the Rajya Sabha.

“Reports have been submitted by banks to the RBI regarding the amount deposited in the banks as on December 30, 2016,” he said.

[The Hindu Business Line]