The IT Department’s 9 Biggest Cash Raids Since Demonetisation

The IT department’s strategy to intensify searches for tax evaders has resulted in an all time high cash seizure.

Updated
India
5 min read


Cash found during Income Tax raids (Photo: <a href="https://twitter.com/search?q=bengaluru%20raid%20ani&amp;src=typd">ANI Screenshot</a>)

Post demonetisation, the country has witnessed an increased number of Income Tax raids, much to the misery of black money hoarders. The strategy to intensify the search for tax evaders has been successful insofar as seizures of illegally stored cash is at an all time high.

A large number of people have come under the scanner of the IT department and tax fraud and illegal conversion of currency are being investigated nationwide. Here’s a list of some of the biggest raids in India:

1. Seizure of New Notes in Bengaluru

An Income Tax department raid unearthed a whopping Rs 5.7 crore in cash from the residence of two engineers and two contractors in Bengaluru. The money was all in new currency notes and about Rs 90 lakh was found in demonetised notes. This is the biggest single IT bust after Prime Minister Modi’s demonetisation announcement.

The IT department also found 7Kg of gold and jewelry weighing 9 kg in the raid, valued at close to Rs 5 crores. A Porsche limousine and a Lamborghini were also seized from the residence of Public Works Department engineer SC Jayachandra.

The new notes were found after Income Tax raids were conducted across Bengaluru (Photo: AP)
The new notes were found after Income Tax raids were conducted across Bengaluru (Photo: AP)

2. ED Raids Money Changers in Major Cities

The Enforcement Directorate (ED) conducted nationwide raids and seized Rs 1 crore in old, banned notes from money changers. ED officials also seized foreign currency worth Rs 50 lakh.

These money changers were collecting banned notes from black money operators and converting them to foreign currency. They were charging a commission for the conversion and depositing the unaccounted cash as genuine earnings.

3. CBI Raid at Hyderabad Post Offices

Surprise checks were conducted by CBI officials at eight different post offices in Hyderabad after the demonetisation move. Cash worth 40 lakh was seized from the Himayatnagar Post office after reports of irregularities in the acceptance of old currency notes came in.

The CBI also investigated the post office staff after complaints were lodged that some of them were involved in illegal exchange of old currency notes.

4. Demonetised Notes Seized by Jharkhand Police

Superintendent of police, Shailendra Prasad Burnwal of Dhumka, Jharkhand seized Rs 93 lakh in cash after the police was notified that banned notes worth Rs 1 crore had been exchanged at the Dumka Head Post Office.

Police conducted raids at three different locations and seized Rs 45 lakh in old notes from the Post Office clerk’s residence, 16.5 lakh from the residence of Sibu Patwarui and 31.5 lakh in cash from Sunil Patwari’s residence.



The police team led by SP Shailendra Prasad carried out raids at the house of a clerk of the Dumka Post Office. (Photo: <a href="https://twitter.com/search?q=Dumka%20Post%20Office%20ani&amp;src=typd">ANI Screenshot</a>)
The police team led by SP Shailendra Prasad carried out raids at the house of a clerk of the Dumka Post Office. (Photo: ANI Screenshot)

5. Bahubali's Producer Under IT Scanner

Baahubali: The Beginning was 2015’s highest grossing film. The unprecedented amount made by the producers of the film brought them under the Income Tax Department scanner. IT sleuths raided Bahubali producers Shobhu Yarlagadda and Prasad Devineni’s residences in Hyderabad and cash worth Rs 60 crore was found stored away by the producers in demonetised notes.

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Baahubali: The Beginning</i> movie poster (Photo Courtesy: Facebook/<a href="https://www.facebook.com/pages/Bahubali-film/479230882150990">Bahubali (film)</a>
Baahubali: The Beginning movie poster (Photo Courtesy: Facebook/Bahubali (film)

6. Income Tax Officers Track the Big Fat Reddy Wedding

Tax officials kept a close watch on Janardhan Reddy’s daughter’s extravagant wedding. They turned up at Reddy’s office in Bellary with a notice and a questionnaire regarding the details of the expenses incurred during the wedding.

The grand wedding was attended by many politicians including JP state president and former Karnataka chief minister BS Yeddyuappa. The News Minute published a copy of the IT department’s notice and questionnaire.



Income Tax department’s notice and questionnaire (Photo: The News Minute)
Income Tax department’s notice and questionnaire (Photo: The News Minute)

7. IT Department Raids Private Engineering College in Chennai

In a tax raid conducted in Chennai, unaccounted cash worth Rs 8 crore was found in bank accounts of employees in a private engineering college. This huge sum of money was deposited in 400 college employee bank accounts.

A few days ago, we got information from some employees of the college saying their bank accounts were used by college owners to deposit cash. Based on this we conducted searches.
Senior IT official

Private colleges in Tamil Nadu receive a large amount of unaccounted cash from students who pay for a seat in the college, reportedly.

8. Tax Raid at NGO With Links to Pakistani Artist

The IT department and the Delhi Police crime branch conducted a raid at the premises of a non-profit organisation, ‘Routes to Roots' in Hauz Khas. The NGO is run by the managers of famous Pakistani singer, Shafqat Amanat Ali Khan.

The raid was a response to the CDs of a sting operation conducted by TV channels sent by the Information and Broadcast Ministry. The sting operation exposed how black money was used to finalise deals with Pakistani artists and actors like Fawad Khan and model Mawra Hocane.



Shafqat Amanat Ali Khan (Photo Courtesy: Twitter/ <a href="https://twitter.com/ShafqatAmanatA">@ShafqatAmanatA</a>)
Shafqat Amanat Ali Khan (Photo Courtesy: Twitter/ @ShafqatAmanatA)

9. IT Sleuths Unearth Rs 20 Lakh of New Currency Notes From Traders

IT officials found Rs 20 lakh of unaccounted cash in new Rs 2000 notes and fresh Rs 100 notes from the old cloth market in Ahmedabad. This is the first time that IT department sleuths are keeping a vigilant check on traders and markets which were involved in the conversion of old currency notes. The traders exchanged old notes in return for new currency at a commission rate of 30 percent and 40 percent.

(With media inputs.)

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