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One Delhi Trader Sold ₹100 cr Worth Gold In Just 4 Hours, Right After PM's Demonetisation Announcement

Kaala sona?

10/12/2016 12:44 PM IST | Updated 10/12/2016 1:43 PM IST
Sivaram V / Reuters
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Addressing a rally in Gujarat today, Prime Minister Modi announced that 'no one will be spared'. Of course, he was referring to black money hoarders. He added that his government has left no route of escape for people who have stocked black money in the country.

"You must have seen how bank officials and others who have stashed huge amount of black money are being caught. They thought they can escape through back channels but they didn't know that Modi has installed cameras in the back channels as well," he warned.

Almost on cue, The Indian Express today reported that the Income Tax Department is investigating 'suspicious' sales of gold worth nearly Rs 100 crore in three outlets of a well-known gold trader in Delhi. All these purchases were made in cash between 8 pm and 12 am on November 8. In a 'sudden' announcement made that evening Prime Minister Modi had declared that the existing ₹500 and ₹1000 notes will cease to be legal tenders from midnight, that very day.

The report says: "According to official sources, the department found that Kundan Care Products Ltd (KCPL) sold around 200-250 kg of gold from these outlets that night, of which sales worth nearly Rs 75 crore were recorded within those four hours at one outlet in the Kucha Mahajani area of Chandni Chowk."

READ: Income Tax Raid On Delhi Axis Bank Branch Reveals 44 Fake Accounts With ₹100 Cr Deposits

It turns out that each purchase was worth a little less that Rs 2 lakh. According to existing laws, the seller is not required to keep a record of the customer's PAN number if the purchase made is less than Rs 2 lakh. Over the next couple of days at least Rs 90 crore, all in old notes, was deposited by the company in various banks, including Axis Bank, which is in a soup for having 44 fake accounts with ₹100 crore deposits.

Income Tax Department raided the Chandi Chowk branch of Axis Bank in New Delhi yesterday and found that it has 44 fake accounts where about ₹100 crore worth of old notes have been deposited since the demonetisation.

The accounts had been set up with forged documents, raising suspicion that Axis Bank staff may have been in the know and may have helped creating these accounts.

Read the complete Indian Express article here.

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