Rs 5,400 crore undisclosed income detected post-deMo

A whopping Rs 5,400 crore worth of “undisclosed income” has been detected by law-enforcing agencies till January 10 since demonetisation came into force last November, the government has told the Supreme Court. It also made references to “vario­us malpractices”, which came to fore post-demonet­i­sation, including the use of old currency notes for buying gold.

Giving details about the raids and recoveries by the law-enforcing agencies, it said that after the demonetisation period of November 9 to December 30, 2016, the income-tax department had initiated “Operation Clean Money” on January 31 to leverage technology and data analysis for e-verification of the cash deposits made during that period.

The ministry of finance in an affidavit said that between November 9, 2016 and January 10, 2017 alo­ne, there were more than 1,100 raids/surveys conducted by the income tax department on various persons. During this period, over 5,100 notices were issued for verification of “high value suspicious cash deposits made in bank accounts”, it said.

“As a result of the raids and other strict measures enforced, more than Rs 610 crore in cash (including cash of Rs 513 crore out of which Rs 110 crore was in new currency) and valuables were seized by the I-T department and other government agencies.

“The undisclosed

inco­me detected in the above actions was more than Rs 5,400 crore,” the affidavit said.

It said that out of 1,100 raids and surveys, more than 400 cases were referred to the enforcement directorate (ED) and the central bureau of investigation (CBI) for further action in accordance with law.

“The exercises have resulted in the identification of approximately 18 lakh persons for such online verification, who appeared to be not in line with tax-payers’ profile. At present, more than 12 lakh online responses from 8.38 lakh distinct PANs/persons have already been received.

“It is submitted that in case there has been due explanation, the verifications are being closed after proper analysis and examination. Similarly, where there have been deposits made in the pradhan mantri garib kalyan yojna (PMGKY), then also the verifications are being closed.

“It is further submitted more than 3.78 lakh out of the approximately 18 lakh high-risk cases have been detected and taken up for assessment and investigation,” the finance ministry said in the affidavit.

The government on November 8, 2016, announced the demonetisation of all Rs 500 (US$7.40) and Rs 1,000 (US$15) banknotes to curtail the shadow economy and the use of illicit and counterfeit cash to fund illegal activity and terrorism.