Nation Current Affairs 24 Nov 2016 Bengaluru: Money lau ...

Bengaluru: Money launderers tap loan takers

Published Nov 24, 2016, 6:35 am IST
Updated Nov 24, 2016, 7:17 am IST
Offer them old notes to foreclose existing loans; borrowers repay using new currency notes.
A vendor at Russel Market swipes the card of a customer in Bengaluru on Wednesday  (Photo: DC)
 A vendor at Russel Market swipes the card of a customer in Bengaluru on Wednesday (Photo: DC)

Bengaluru: Businessmen, industrialists and working people, who have taken bank loans are being sought after by those having unaccounted money.

According to the bank officials who are dealing with loan accounts, those having unaccounted-for money are trying to lure them to close their loan accounts through a one-time settlement.


“It is one of the easiest ways to convert black money into white. Hundreds of people, especially the salaried class who have car loans, house loans and industrial loans are now approaching banks seeking pre-closure of their loan accounts. As we don’t have any issues, we are allowing them to close their accounts with a nominal penalty,” explained an officer.

A businessman told this newspaper that this kind of money laundering is widespread in the real estate sector. “Real estate businessmen with black money are convincing those who have bought houses/sites from them through the bank loans to close their loan accounts through the old denomination notes given by them. Their condition is that from next month they should start making payments to them in line with EMI,” he said.


The bank officials affirm they don’t have any issues with the pre-closure of the loan accounts. “But no one is sure about what the Income Tax department is going to do. Customers can inform the IT department that they have repaid the loan amount by taking another loan. Those who have given money may face a problem,” he said.

Silk farmers paid in old notes
According to farmers engaged in ‘sericulture’, the cocoon market of Ramanagar, where the daily business turnover is around Rs 3 crore, most of the buyers are paying through old denominations.


“Till last year, these buyers were making growers wait till one or two days for full payment. But this year they are making all the payments on the spot. They are even paying Rs 500 extra! But all payments are made in old notes.

Most of the farmers are accepting them as they feel they can exchange these old notes in banks before December 30,” said a farmer. According to the local farmers, the annual turnover of the market is around Rs 200 crore.

Location: India, Karnataka, Bengaluru