Longs queues outside the banks are to stay for a while as most ATMs will take at least two-three weeks to be fully functional. People with illegal money, however, have found various ways to go under the radar to convert black to white. Express captures the craft of laundering.
1) Educational institutions, hospitals, and other companies increased employees' salaries or gave them money to deposit in their accounts. Each handed Rs 2-5 lakh depending on their loyalty. The amount would be returned in cash for a small hike or commission.
2) As the income through agriculture is not taxable, many black money hoarders are tampering with their accounts to show income from agriculture. This has come as a blessing for politicians especially in Andhra where majority own agricultural lands.
3) The obvious is making use of domestic maids and other people from lower economic backgrounds. Enquiries made in Chennai showed how hostel owners in the city took a few such people to deposit amounts.
4)Some people are said to be giving interest-free loans as each individual can convert up to Rs 2.5 lakh without having to pay tax. People with black money will get their money back after few months or even years, while those taking loans would not have to pay any interest on such loans.
5) Some people are said to be giving interest-free loans as each individual can convert up to C2.5 lakh without having to pay tax. People with black money will get their money back after few months or even years, while those taking loans would not have to pay any interest on such loans.
6) In an educational institution group whose owner is into politics, students working for him during the general elections have been entrusted with the task of converting black money into white. In return, students are being offered pocket money. Students in charge of these transactions are promised two-wheelers just like during elections. Some institutions are offering gadgets like laptops.
7) The loans availed by self help groups, farmers are being cleared by black money holders. They will continue to pay instalments to the black money holder instead of banks.
8) Though gold price has doubled in the black market where it is being sold anywhere between Rs 50,000 and Rs 65,000 per 10gm, the black money hoarders are making a beeline for the gold merchants.
9) Some are taking help from small family owned supermarkets. Like in the case of jewellery shops, transactions will be backdated with receipts and taxes.
10) Authorities suspect there are agents doing brisk business by taking commission of up to 50 per cent to convert black money to white. Those with black money do not mind paying commission.