Amid Notes Ban, Agents Offer To Convert Black Money. NDTV Investigates

 Share
EMAIL
PRINT
COMMENTS

The government has banned Rs 500 and 1000 notes to crack down on black money and corruption.

New Delhi: 

Highlights

  1. Rs 500, 1000 notes banned to curb black money, corruption
  2. Middlemen outside banks in Delhi offer to convert unaccount money
  3. Using loopholes, they say can convert black money at 30-50% commission
Billed as a landmark move to curb tax evasion and corruption, the government's less than two week-old decision to recall 500 and 1000 rupee notes faces a graver challenge than the political bickering it has spawned.

An NDTV investigation has found that for cuts ranging from 30 to 50 per cent of the total sum, middlemen are touting services in Delhi to launder 'black' or unaccounted money for others by using different bank accounts.

While most of the people outside banks, swamped with those waiting to exchange cash, claimed to have come there for themselves, a few admitted that they were helping others.

Some of them admitted to standing in line to "help" those who could not go there to exchange money and a few even offered services in case someone needed a greater degree of assistance.

"We can put up to Rs 2.5 lakh of your money into our accounts and then withdraw and give it to you later. This would of course come at a fee and could range from 30 to 40 per cent," said a man who said he was a retired bank guard.

The transaction evidently would be illegal and amount to laundering of money. It would exploit a provision which allows individuals to deposit up to 2.5 lakh in their bank accounts without inviting scrutiny.

Another person said that he personally had three accounts and could "take care" of Rs 7.5 lakh. This could go up to 20 lakhs if needed as he "had access to accounts of family and friends" as well.

As a caution, he added that the money would be withdrawn after some time "so as to not spook the authorities". But the money put deposited would be safe and the deal would be honoured, he assured.

At another part of the city, in North Delhi, similar offers were not difficult to find. However here, two of the men told us that they would keep 50 per cent of the money funnelled through their accounts and those of their confidantes as they already had a few offers.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................