KOZHIKODE: An intense drive against black money might be taking place across the country since demonetisation. But the shadow economy is far from being wiped out.
The arrest of three youths on Friday from Koduvally, Kozhikode, revealed the still strong presence of sub rosa deals, helping black money hoarders to convert the demonetised Rs 500 and Rs 1,000 currencies into new notes.
Police said the rackets behind such operations reap huge commission out of the deal. They stumbled upon the activities of the network with the arrest of three persons carrying banned notes worth Rs 30,20,000 inside a car.
The arrested were: Riyas, 42, Feroke, Mohammed Aslam, 29, Chaliyam and Ajith K P, 29, Beypore. A police team led by Koduvally CI Biswas busted the racket during a routine vehicle inspection. The accused were produced before the court and police will move an application seeking their custody for detailed interrogation.
“Several persons have stashed away old currencies because they could not reveal the source of income. The arrested have been searching for options to convert the banned currencies,” said Koduvally SI K Prajeesh. He said the police would probe in detail the modus operandi of the gang.
But the initial information revealed these rackets give only 20-30 per cent of the black money in new currencies. But there are many takers for this because they feel such a deal is better than destroying the banned notes.
“The possibility is to smuggle out the collected banned notes and use NRKs, coming to Kerala, to deposit them,” he said. The Income Tax and Enforcement Directorate officers raised doubts on the viability of this method citing the strict monitoring by customs in airports.