Hyderabad: Several agencies raid forex traders, jewellers post demonetisation

Hyderabad: In a massive crackdown on rackets trying to convert demonetized Rs 500 and Rs 1,000 notes into gold, foreign exchange and diamonds, several agencies conducted searches across the city on Friday.

The Enforcement Directorate raided at least six major foreign exchange traders. A source said, “They back-date and sell dollars and foreign currency in exchange for Rs 500 and Rs 1,000 notes.”

Forex fraud involves kin abroad
The black money holders send foreign currency, obtained by using demonetised notes, to their kith and kin abroad who remit it back to India, a sources said. The ED is likely to book cases under FEMA against the foreign exchange operators and those involved in selling the black money.

Separately, income-tax officials clamped down on jewellers and bullion traders across Telangana and Andhra Pradesh. Raids continued till as late at 9 pm on Friday across the districts in the two states. Following this, most of the traders stopped accepting cash.

A six-member Income-tax department team raided DP Gold at Mandapala Street in Nellore city late on Friday evening. The officials closed the shop's doors soon after entering and verified the sales and purchase details for a long time.

The search created a flutter in the area dotted with jewellery shops and every shopkeeper downed shutters within no time, fearing surprise checks. Officials of Central Excise Intelligence also served notices to jewellers in Vijayawada and Hyderabad, asking for details of stocks held by them as well as the sales of the past few days.