The IT department had received information that some bullion dealers were exchanging gold bullion on a commission basis to help change black money in high denomination old notes.
To make transactions "white" they allegedly used the help of smaller jewellers.
The IT department found huge sales had been made during November shortly after the currency ban, compared to the similar period last year.
It was found that the cash transactions were kept below Rs 2 lakh and there were no details about the supposed customers.
In another case, illegal conversion of old notes was allegedly going on in Anekal Taluk in Karnataka. Income-tax team members presented themselves as wanting to exchange some money.
When the availability of currency was confirmed, other IT officials waiting at some distance were signalled. Rs 1.15 crore, out including Rs 1.07 crore in new currency, has been seized.
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