Syndicate busted in Mumbai for exchanging scrapped currency

The Income Tax (IT) department stumbled upon a syndicate operating in the city that was converting banned currency into legal tenders for a commission.

“Income tax investigations in Mumbai unearthed a syndicate of ground level operators that was converting banned notes into legal tenders. As part of the operation to nab the culprits, the IT investigation directorate sent out some decoys as customers, seeking to exchange the banned notes,” said an officer.

A trap was laid out by IT sleuths, after which the mediator was held.

“The syndicate, acting through a mediator, agreed to the exchange the cash for a 35% commission. The transaction was to be carried out at the mediator’s residence. He was caught red handed and new notes worth Rs.29.5 lakh were was seized,” said the officer.

The case has led investigators into a synchronised racket.

“It has now come to the fore that the syndicate comprised many ground level operators — mainly locals, led by an aggregator and a mediator. The mediator would seek customers. The operators would withdraw new currency in their own names or that of others within the prescribed weekly limits, pass it on to the aggregator for a commission and deposit the old notes in their own accounts or the accounts of family or friends in small sums,” said the officer.

In Nagpur, sleuths investigating cash deposits in bank accounts stumbled upon seven accounts that were being used to stash money. “The account holder had no knowledge of the existence of these accounts where Rs3.29 crore had been deposited after November 8. Inquiries revealed six such accounts in her and her parents’ names, operated by unknown persons. Evidences suggest that copies of her PAN card and other personal documents that she handed over to a friend few years back were used to open these accounts in Kolkata,” said an officer.

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