Cash transaction hit after seizures

Surat: Most of the angadia firms in the Diamond City are scared ever since income tax department made cash seizure to the tune of Rs1.28 crore from courier firms in Vapi a few days ago. The model code of conduct has spread the fear of static and flying surveillance teams among them because this happens to be election time.
Devsinh Kanani, a diamond dealer of Varachha’s diamond market, has to deliver a polished diamond parcel worth Rs40 lakh to a trader in Mumbai through an angadia firm. One angadia firm has agreed to deliver the diamond parcel in Mumbai, but refused to make cash delivery in Surat.

Cash transactions in diamond industry in Surat and other parts of the state have come to a grinding halt as angadia firms, known as unofficial banking-cum-courier service, refuse to carry cash in view of black money guidelines issued by Election Commission of India.

Industry experts said tens of thousands of diamond workers in Surat, Navsari, Ahmedabad and small villages in Saurashtra will not be able to get their wages on time as angadia firms have refused to deliver cash. Most of the diamond firms in Mumbai and Surat have been sending cash through the angadia firms.

Barring a few big diamond companies, the entire industry depends on angadia networks more than even banks.

“Almost 99 per cent of the cash delivered by us have no official records. Once caught by surveillance teams, we have no other option but to surrender the cash. This is why we have refused people connected with diamond industry to deliver cash within Gujarat. If one needs to deliver cash in Mumbai, we can do that for him,” said an owner of an angadia firm.