Touts working overtime to help traders in black money conversion

Karimnagar: Unable to take black money to cities like Hyderabad and Bengaluru for security reasons, petty traders of Karimnagar, Peddapalli and Jagtial, whose black money savings ranging from Rs 10 lakh to Rs one crore, were allegedly availing services of commission agents, who charge 20-35 per cent, to get it converted to white.

The traders were stated to be not hesitating to avail the agents’ services even though their commissions are more than prevailing in cities. Traders, especially those who made it big in real estate, were reportedly facing problems in getting their black money converted to white.

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Some traders, whose quantum of black money does not exceed `20 lakh, are even prepared to give 50 per cent of the money to the commission agents to get it converted to white

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While some others, whose quantum of black money does not exceed RS 20 lakh, were even prepared to give 50 per cent of the money to get it converted to white.

The commission agents contacted a trader of Karimnagar city to convert Rs 30 lakh black money to white over telephone.

An agreement was reached over this with a commission of 30 per cent. Most of the conversion business was being carried out through phone.

The modus operandi of the commission agents was to deposit Rs 2.40 lakh in the bank accounts of menial workers like servants and dhobhis with whom they were well acquainted by offering them Rs 10,000 as gift.

After depositing the amount, the benamis should handover whatever money with them in denominations of Rs 50, Rs 100 and Rs 2,000 to them. There are many such commission agents busy working in Karimnagar district.

In case of some others hoarding the black money, they are negotiating an understanding with trusts, societies and agencies to handover their money to them for a consideration of receiving white money after six months.

There were reports of some commission agents defrauding the traders in some cases. However, these agents clandestinely complete the task.

The traders on their part are entrusting the task to the most credulous as they would not be able to approach the police for justice if something goes wrong in the transaction since black money was involved.

Business establishments, whose daily turnover is between Rs 10 lakh and Rs 30 lakh per day, are using black money to carry out the business and deducting their commission and giving white money to the ‘customers’.

In case they struck a big deal, the business establishment is suspending its business operations for the day and doctoring the accounts using the black money and moving the goods proportionately to other locations.

This is how the traders are converting the black money into white. Such transactions never exceeded Rs 1 crore mark.

According to reliable sources, some bank employees were also involved in the activity. Some of the former bankers, who were well versed with such tricks, were also making a fast buck exploiting the situation in the aftermath of demonetisation of high-value currencies.

However, the government officials were dismissing such transactions as trash. Unless the officials explore deep into these activities, such nefarious activities will come out.

According to a former banker Srinivas, many traders having black money were bringing their black money into the mainstream through the banking system.

He appealed the bank employees not to cooperate with such traders, who bypass the banking system to convert their black money into white money.

A retired bank employee Chandra Prabhakar said, quoting sources, many traders have been offering inducements to women’s self-help groups and societies to get their black money converted to white exploiting the government rule that deposits up to Rs 2.40 lakh would not come under the purview of the scrutiny.

Tax authorities, bankers, the police should probe deep into such transactions to give effect to the Modi’s demonetization objective.