Illegal assets vault to private lockers

[RISING SUN]

Illegal assets vault to private lockers
When income tax authorities began investigations against a businessman associated with a leading car manufacturer, the trail led them to a vault, run by a private agency. On opening it, officers discovered several kilos of stashed bullion, along with diamond and cash. Curiously enough, the vault was allotted to the businessman's employee, which would not have raised suspicion.

Similarly, a search operation relating to a Jaipur-based financier led them to a private vault where bundles of Rs 500 notes were nearly stacked. Using cash counting machines, the team found that Rs 3.57 crore was stored in the vault, almost a quarter of the "surrendered income" of Rs 15 crore, a senior tax officer said. Photos of money in lockers are not new.

After all, 'tijoris' at homes of businessmen have been around for years (often with a combination lock). But instances of cash, bullion and precious stones stashed in private vaults are on the rise as those with undisclosed assets find it easier to deposit it away from their homes or offices. While many of these, run by local businessmen, are in and around wholesale markets,
where cash still dominates transactions,
, there is a rising trend of them being located in residential localities.

In a recent raid by the I-T department, money was found in a vault in South Delhi's Saket. Officers said some sprung up in upmarket residential localities across the country. Unlike a bank locker, where it is illegal to keep cash, the private vaults offer more privacy and getting details of the those who have rented them is more difficult compared to one in a bank branch. Plus, it's "easier to do business" in these vaults as records maintained by them are not as comprehensive.

Given that it is not easy to access information, in a few cases, the tax department has become an "active participant" to track down those stashing undeclared wealth.

Recently, the department got one of its inspectors to rent space in a private vault and gave him cash to keep it in the safe. Over the next five-six months, the inspector would visit the vault almost on a daily basis and keep an eye on "regular users". In addition, he befriended some of the workers at the private vault and got details about the real beneficiaries, said an officer.

Using the information, tax department officers zeroed in on a few people, resulting in a detailed scan on them followed by action against some. "While there is emphasis on data mining, we have not given up on the way we have traditionally done business," said an officer, adding that investigation teams across states were relying on multiple sources to zero in on suspects.
https://m.timesofindia.com/business...t-to-private-lockers/articleshow/61553973.cms

 

[RISING SUN]

EXPOSED: A bogus co with 2000 bank a/cs transacted Rs 4,000 cr in cash during cash ban
Government has unearthed cash transaction of up to Rs 4,000 crore by a fake company which had more than 2,000 bank accounts, Defence Minister Nirmala Sitharaman said here today.

"We have spoken in public about operation of fake shell companies. One such fake company had about 2,000 bank accounts," she said.

The company did not disclose any detail of how it generated income. But it came to light that the company had 2,000 bank accounts, she said.

The minister said the company used the government's December 30 2016 deadline asking people to deposit old Rs 1,000 and Rs 500 notes in bank accounts, to convert black money to white.

"This incident has been unearthed. Now the company has been shut", she said. Sitharaman sought to know from the opposition whether this would have come to light if demonetisation was not implemented.

"If note ban was not implemented do you think this (incident) would have come out? There are people who just wanted to make unnecessary argument", she said.

Noting that the BJP government decided to include unearthing of black money in its 2014 poll manifesto, she said that "despite his old age (BJP stalwart L K) Advani took up country-wide yatra against black money."

She pointed out that the UPA government had not even formed a SIT (Special Investigating Team) from 2011 despite a direction from the Supreme Court. It was the Narendra Modi government which did it after assuming office.

"We have been taking steps against black money stages by stages.", she said. The SIT, headed by former Supreme Court judge M B Shah,is responsible for investigating cases of black money stashed abroad through coordination of various members from Reserve Bank of India, Intelligence Bureau, Enforcement Directorate , the Central Bureau of Investigation,the Financial Intelligence Unit, the Research and Analysis Wing (RAW) and DRI.

On criticism that the note ban caused hardship to people, she said the Centre had given an opportunity to those with unaccounted cash or assets to declare it on or before September 30, 2016.

"You were given a chance to declare unaccountable cash or assets if you had. A deadline was also given to them (those who had unaccounted cash to deposit) before September 30, 2016.

After withdrawal of Rs 500, Rs 1000 notes only incidents of such fake companies came out", she said.

"They (critics) ask what you have achieved by implementing demonetisation. What do incidents like these mean?", she asked.

Sitharaman rued that citizens paying tax regularly did not question the government for lack of services, despite having the power to do so.

"We do not have the boldness to question the government if there is deficiency in services like not laying proper roads or not providing water supply despite regularly paying taxes", she said.

Stating that "terror funding" has come down, largely due to the note ban, she said some forces in the Kashmir valley used to fund young women to take part in protests and pelt stones. "They have been doing this kind of thing based on support by a country which is against us. Now with implementation of demonetisation this has been removed", she said.

Similar was the case with Naxalites, she said. "Naxalites have been threatening road contractors for some commission (in Naxal hit areas). They claim they are at war against India. But today they are also facing difficulties due to demonetisation", she said.

The minister was here to take part in a conference, observing the first anniversary of demonetisation as 'anti-black money day', organised by the BJP traders wing.
http://www.moneycontrol.com/news/bu...-4000-cr-in-cash-during-cash-ban-2433301.html