VIJAYAWADA: While most people are suffering due to demonetisation of large value currency notes, some are making money. Those with excess amounts of unaccounted cash are utilising the services of unemployed youth and students to turn this ‘black money’ into while by paying them commission. In Ajithsinghnagar and Gunadala of Vijayawada city, people with unaccounted money are paying Rs 1,000 in commission to exchange of Rs 20,000.
There are three ways this exchange of money is taking place. According to sources, currency exchange agents have sprouted after the demonetisation. These agents are striking deals with the black money holders, and charging 20 to 25 per cent of the actual amount as commission, depending upon the requirement. In the second stage, these agents employ services of students who have valid photo identity cards like a voter ID card or driving licence which is accepted by the banks.
Every student is then given Rs 20,000 per day and they have to exchange the old notes with new ones five separate banks. The students get 5 per cent of the money changed as commission. Hundreds of transactions are going on in this way as there is no centralised database available with banks to check the number of withdrawals made by each person. Those who used to run the call money and daily finance businesses are using these techniques to earn quick bucks.
When asked about this, Vijayawada police commissioner D. Goutam Sawang told DC that this was a grey area. He said that the cops cannot intervene in every transaction as it is very difficult to prove their illegality, especially in smaller amounts. “But if this is going on in an organised manner, it will disrupt the actual procedure. We will definitely take stern action against such agents,” Mr Sawang said.
“We are also hearing many things about people adopting different ways to exchange currency notes, but we have not come across any organised racket. However, we are keeping a close eye on possible offenders,” he said.
I-T wing struggles with staff shortage:
The Income Tax department is grappling with a severe staff crunch as it keeps an eye on currency transactions after demonetisation of high value notes. Though the banks are allowing exchanges in smaller amounts, there are reports of people resorting to illegal ways to exchange their unaccounted cash. It is here that the staff crunch in the I-T wing is most visible.
A top official in the department, on condition of anonymity, admitted that they don't have enough manpower to verify each and every transaction taking place at this stage. He said, “Cash deposits will come under scrutiny at a later stage, but to keep an eye on exchange of cash is not possible with the manpower we have right now.”
“We are looking at bullion transactions that have taken place after the demonetisation announcement,” the official added, saying that the I-T wing has identified some large transactions in cash that are more than the permissible amount. “We have issued notices to the gold merchants as well.”
