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War on black money: At least 50 people nabbed, over Rs 90 crores cash seized after demonetization

Some of the people scrambling to deal with piled up black money were caught red-handed by the authorities.

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In the three weeks since PM Modi announced the demonetization decision, at least 100 cases have been reported of large amounts of cash being seized by authorities across the country.

Though there seems to be divided opinion on the planning, implementation and after-effects of demonetization, it has also given sleepless nights to several black money hoarders. While there have been reports of people burning or throwing demonetized Rs 500 and Rs 1000 notes in dustbins and rivers, there have also been instances where people have been caught red-handed trying to hide, exchange or find other ways to convert any untaxed or black money.

On the basis of media reports so far, around Rs 90 crore has been seized in old and new currency and around 57 people have been detained and arrested since November 10. The maximum number of incidents were reported from Maharashtra, Gujarat, Delhi and Bihar. Two cases involving BJP leaders were also reported from Maharashtra and Gujarat, where money amounting to Rs 91.5 lakh and Rs 31 lakh respectively was seized.

Though, no official figure on fraudulent transactions is available yet, the Reserve Bank of India (RBI) has released data on the deposits made since November 8. A total of Rs 2.99 lakh crore was reportedly deposited in banks from November 19 to 27, while Rs 5.11 lakh crore was deposited between November 10 to 19. There has also been a sharp increase in Jan Dhan deposits across the country. Rs 27,200 crore were deposited in 25.68 crore accounts in just 14 days, from November 9 to 23, while the deposits before November 9 amounted to Rs 45,636.61 crore.

While those trying to hide their black money are finding loopholes in the system, the government is trying to avoid leaks. Income Tax Amendment Bill which was passed by Lok Sabha on Tuesday proposes 85% tax plus penalties for those caught illegally converting money, while those who disclose black money will have to pay 50% tax, out of which 25% will be returned after four years.

In order to ensure that people do not deposit someone else's unaccounted black money in their account, it was earlier declared that the Income Tax department would punish the violators of newly enforced Benami Transactions Act with penalty, prosecution and rigourous jail term of a maximum seven years. 

PM Modi had on November 8 declared that Rs 500 and Rs 1000 notes would not be legal tender starting midnight that evening, which sent a wave of panic across the country. Opposition parties, who are not happy with this decision of the government have been protesting against demonetization in Parliament for the last 10 days, while blaming the PM for 82 deaths related to bank hassles that took place after the announcement was made.

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