Income Tax raids in Delhi and Mumbai after PM Narendra Modi Bans Rs 500 and Rs1000 Currency Notes

New Delhi, November 11, 2016: The sudden demonetization in India has left many perplexed. While there are many who are struggling to get their currency notes exchanged, others are trying to salvage every last rupee from their illegal hoards.

In a masterstroke move, Prime Minister Narendra Modi announced the ban on the current 500 and 1000 rupees notes on November 8. This action was undertaken with the focus on to curb the unaccounted riches.

PM Modi tweeted, "I assure you the government is unwavering in its effort to create an India that is corruption free and fruits of development touch every citizen".

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This has led to people flocking to banks to exchange their redundant notes for the new currency notes but many have resorted to illegal means due to the fear of investigation as a bank deposit worth more than 2.5 lakhs will undergo heavy scrutiny.

Raids were conducted in Delhi, Mumbai and some other cities based on reports of tax evasion by converting the older notes into other forms by illicit methods. Many traders have shut down their stores in fear of tax raid.

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The Income Tax department has asked the investigation units in the country to keep an eye out for suspicious transactions in cash. The department claims, the actions they took were a part of a normal regular survey performed to curb such illegal practices. Items are bought at a much higher price and the hawala dealers (money launderers) exchange the cash for international currencies at unbelievably high rates.

Raids were conducted in Delhi, Mumbai and in some cities of Punjab after receiving reports saying that traders were accepting Rs 500 and Rs 1000 notes, which were no longer useful, to sell Gold at Rs 50000 per 10 grams and apart form that the dollar is soaring up to a 100 dollars in the hawala market.

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These radical steps taken to eliminate the biggest issue in India is a bold step. Centre has a clear intent to minimise corruption and black money.

However, Corruption on a larger level may not have anything to do with cash. This makes it possible for corruption to still be prevalent in spite of all the steps taken. The ban is also implemented to reduce counterfeits as they are printed in abundance and fund the destruction of a country.

– by Shivam Thaker of NewsGram. Twitter: @Shivam_Thaker