IT sleuths tighten noose around cash mafia, take CBI, ED, police on-board

the Income Tax department has expanded its scope of investigation beyond tax invasion by roping in the police, the CBI and the Enforcement Directorate (ED) to look for possible criminality and money laundering.
IT sleuths tighten noose around cash mafia, take...
India TV News Desk New Delhi December 14, 2016 7:29 IST

In an attempt to go harder on black money hoarders, the Income Tax department has expanded its scope of investigation beyond tax invasion by roping in the police, the CBI and the Enforcement Directorate (ED) to look for possible criminality and money laundering. 

According to a Times of India report, ever since the government’s demonetisation move, the I-T department, in collaboration with other investigating agencies, is probing those caught with big amounts of unaccounted wealth to look for corruption and criminal activities including money laundering. 

Tax evasion is no more treated as a taxation matter alone, in which the accused is let go away by paying tax on unaccounted income. 

Since November 8, in almost every case of detection of unaccounted income, the I-T department has brought in either the CBI or the local police to register an FIR, which eventually allows the ED to register a case under the Prevention of Money Laundering Act (PMLA). 

Once a case has been filed under PMLA, the properties and assets of the accused equivalent to the alleged unaccounted income can be attached and later confiscated on proving of the charges. 

Earlier, an accused of unaccounted income would pay the tax, in some cases penalty, and get away with no fear of prosecution. 

The change in government’s strategy was evident last week when the I-T department had the Delhi Police jointly raided a lawyer in GK-1 and recovered Rs 13.60 crore in cash, which included Rs 2.6 crore in Rs 2,000 notes. 

On Tuesday, the ED arrested seven persons in Bengaluru on charges of money laundering after a search and seizure operation of the I-T department. 

The same day, CBI arrested a casino owner KC Veerendra, also a JDS leader, in Bengaluru after an I-T search where Rs 5.7 crore in new currency was unearthed from his bathroom. 

The agency also arrested an RBI official who was caught trying to exchange banned currency notes with new Rs 2,000 notes. 

 
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