Post demonetisation, businessmen opt for hawala transactions?

A number of businessmen in the city are now preferring a convenient transfer of funds, which takes place with a far lower commission than that charged by banks.
This money transfer by businessmen from the city to Mumbai is done through hawala transaction to avoid GST and other taxes after demonetisation (File | Reuters)
This money transfer by businessmen from the city to Mumbai is done through hawala transaction to avoid GST and other taxes after demonetisation (File | Reuters)

HYDERABAD: A number of businessmen in the city are now preferring a convenient transfer of funds, which takes place with a far lower commission than that charged by banks. This money transfer by businessmen from the city to Mumbai is done through hawala transaction to avoid GST and other taxes after demonetisation. 

A day after the government railway police arrested four persons and seized `66.5 lakh cash that was brought to Nampally railway station to be transported to Mumbai, the investigators, who grilled the arrested persons, have obtained crucial clues in connection with the hawala racket running within the city. 

“We have received specific information about the hawala racket. We produced the arrested persons before the court for judicial remand. The key accused is still absconding and we have kept a close vigil to nab him,’’ said Hyderabad railway Inspector A Srinivas. 

The police are likely to file a petition before the court seeking police custody of the accused for questioning in connection with the offence.  Sources said that a number of businessmen doing their regular business have indulged in making money transactions through hawala.

The four accused are have confessed that they have a number regular clients for illegal money transactions. “The businessmen prefer such money transactions to avoid taxes and the illegal business activity has been going up after demonetisation,” police said. Teams have been formed to intensify the probe and a team of police is likely to visit to Mumbai for questioning some receivers of hawala money.

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