Crooks sabotaging the nation’s war on black money be warned.
A series of investigative stories by India Today exposing the black-market trade of defunct currency has stimulated the Modi government to act tough on the rot.
According to highly-placed official sources, the government has ordered a clampdown on touts, shadowy spot traders, jewellers, hawala operators, accountants and builders profiting from last Tuesday’s dramatic surgical strike on tax cheats.
A day after the prime minister nixed the country’s biggest banknotes to flush out unaccounted wealth, India Today’s special investigation teams fanned out to shine the much-needed light on underground attempts to circumvent the historic currency regulation.
MONEY TOUTS, SPOT TRADERS
In narrow alleyways of Mumbai, right behind the RBI building, the SIT reporters secretly filmed a middle-aged woman and a young man brokering deals to convert black money into white as desperate hoarders scurried to save their dirty wealth.
India Today’s investigative reporters found those touts were willing to organise exchange of the revoked bills with legitimate tender for a commission of 15 percent of the original value of the banknotes.
The undercover journalists also exposed operatives audaciously soliciting currency-exchange business near the RBI building on New Delhi’s Parliament Street.
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The special crews reported how illegal currency hideouts had moved into top gear, less than 24 hours after Modi’s abolition of high-denomination notes.
A deeper investigation revealed lobbies of VAT-exempt traders lifting illegal currency at almost 40 per cent its value from sellers.
The probe found many of them didn’t close their accounts on Tuesday after the prime minister’s announcement. India Today’s SIT unearthed their plans to deposit the outlawed notes back into banks for profits as high as 30 percent after paying income tax.
SHADY JEWELLERS, HAWALA OPERATORS
On Nov 10, the investigative teams exposed a number of bullion traders and hawala operators offering parallel platforms for hoarders of black money to park their unaccounted wealth.
India Today also reported heavy black-marketing of ornaments right in the jewellery hub of Delhi’s Chandni Chowk.
Besides, the SIT caught on camera several hawala brokers short-changing repealed currency in bulk in the same business district.
MONEY DEALERS, BUILDERS
Next, India Today aired its expose of money dealers turning the nation’s currency market into black literally for a fast buck.
In Delhi’s Connaught Place, the undercover investigation found heavy black marketing US dollars for cancelled Indian rupees.
A dollar that was officially priced at around Rs 66 was found to have its value shot up more than double overnight as some underhanded money dealers sold it at premium for Rs 500 and 1,000 rupees.
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The SIT also exposed shadowy builders accepting black money to fraudulently show it as EMIs in accounting books.
CHARTERED ACCOUNTANTS
This week, India Today revealed how some professional accountants were participating in the rampant subversion of the nation’s boldest attempt to clean up black economy.
Posing as hoarders of illicit cash, the investigative reporters met several CAs offering their services to hide the illegitimate money from the financial system.
Seen as gatekeepers of ethical business and corporate culture, those accountants even offered to facilitate false loans in exchange for invalid currency.
In a statement after the sting operation was aired, the Institute of Chartered Accountants of India vowed disciplinary action against CAs shown in the story.
“This interview (sting operation) has caused immense distress amongst the CA fraternity and the same has been treated as a serious misconduct causing disrepute to the profession. This professional misconduct by the CA members also contradicts the stand of ICAI in eradicating black money and lending support to the government of India in this endeavour. This act by the members is unacceptable to ICAI,” the watchdog said.
The ICAI, it added, would launch disciplinary proceedings against “the erring members” with penalty.
CLAMPDOWN
The Modi government at the highest levels, official sources said, has taken cognizance of India Today’s investigative stories on various jugaad mechanics from across sectors trying to upstage the fight against black money.
“The government appreciates and acknowledges the work done by the India Today Group in exposing people who are suggesting ways of converting black money into white. These investigations are being taken very seriously and instructions have been passed to law enforcement agencies to clamp down on these elements,” a top official said.
[Source:-INDIA TODAY]
