What Rs 100 crore-haul of demonetised notes can tell you about India's hunt for black money
In a raid at a building in Uttar Pradesh's Kanpur, the National Investigation Agency (NIA) has recovered currency worth Rs 100 crore (and counting) — all in demonetised Rs 500 and Rs 1,000 notes, making it the largest-ever haul of demonetised notes in the country.
The cash that was recovered in the raid carried out on Tuesday (January 17) is reported to have been stored in several rooms of a multi-storied building. The recovered banned notes made up a bed-sized stack of cash. The raid was reportedly carried out by NIA with the help of the UP Police. Reserve Bank of India (RBI) officers also accompanied the team. NIA officials have estimated the total cash haul will exceed Rs 100 crore since the counting of notes hasn't been completed yet.
Demonetized currency worth crores seized from a residential premises in Kanpur, counting underway, questioning on. pic.twitter.com/DejcQ7hEJb
— ANI UP (@ANINewsUP) January 17, 2018
A Hindustan Times report said the building belonged to one Anand Khatri, part of Raj Ratan group that has diversified business interests, including real estate, healthcare and textiles. At least 16 people have been arrested in connection with the case so far, the report said.
"The investigating agency suspects the cash was hidden with an intention of converting them into legal currency through covert means," the paper reported.
Since the government banned the high-value notes, hundreds of crores of the demonetised currency found their way into the formal banking system, a large part of them illegally.
The government demonetised Rs 500 and Rs 1,000 notes on November 8, 2016.
Received information of presence of demonetised currency worth crores at a person's residential premises in Kanpur, raid was conducted, RBI and I-T dept officials informed, final amount not ascertained as search & counting underway, questioning on: AK Meena, SSP, #Kanpur pic.twitter.com/Tqup83cXhj
— ANI UP (@ANINewsUP) January 17, 2018
An NDTV report said: "The money allegedly belongs to a group of people. Ashok Khatri's business, the police suspect, was a cover for money-laundering."
In November 2017, the NIA seized more than Rs 36 crore in demonetised currency notes from New Delhi, allegedly linked to the financing of terrorist and separatist activities in Jammu and Kashmir.
Seven people were intercepted by an NIA team in the capital's Connaught Place area when they were carrying 28 cartons filled with demonetised Rs 1,000 and Rs 500 notes in four vehicles - BMW X3, Hyundai Creta SX, Ford EcoSport and BMW X1, an NIA spokesperson said.
In the case that emerged on January 17, a Times Now report quoted sources as saying that authorities are looking at the involvement of government officers.
While it remains unclear what the men were planning to do with the money, authorities have asked the Income Tax department to find out how the money was to be exchanged.
According to RBI, more than 99 per cent of the demonetised notes have returned to the banks. The I-T department is in the process of sending notices to 1.16 lakh individuals and firms who made cash deposits of more than Rs 25 lakh in bank accounts post the note ban but failed to file returns by the due date.