HYDERABAD: Zeroing in on money laundering activities in the wake of demonetisation announcement by Prime Minister Narendra Modi on November 8 evening, the sleuths of Income Tax department in Hyderabad came across a jeweller, who allegedly attempted to convert old high denominations notes of Rs 100 crore into gold bullion.
Sleuths who surveyed the ‘reputed’ jewellery store owner found out that he has split the sales below Rs 2 lakh in old notes from about 5,000 customers amounting to more than Rs 100 crore between 9 p.m. to mid night on November 8-- the day Modi made the announcement on demonetisation.
A press release from the IT department said here on Saturday that the jeweller had failed to take any proof of address, PAN, phone numbers from 5,000-odd fictitious customers and bypassed the Know Your Customer (KYC) norms by splitting the bills into less than Rs 2 lakh. PAN number is mandatory for jewellery sale of over Rs 2 lakh.
“On verification of bank accounts of the jeweller it is learnt that he has deposited Rs 100 crore in old high denomination notes between November 10 and 17. The two concerns in which the jeweller booked the sales had no sales prior to demonetisation.
Thorough investigations revealed that the CCTV footage showed that the shop was closed at 8 p.m. on November 8,” says a release.
The Enforcement Directorate has been informed to take appropriate action under Prevention of Money Laundering Act (PMLA), apart from the penal consequences under Income tax Act/Benami Properties (Prohibitions) Act. Further investigation is on.