Phoney funds by bullion traders & jewellers
A Hyderabad story
Investigations were initiated on a Hyderabad-based group on receipt of information that Rs 97 crore cash had been deposited in demonetised currency notes. During investigations, the group claimed to have received cash from various customers on November 8, 2016 from 9 pm onwards towards advance for purchase of bullion. The irregularities found during search actions are as under:
It was claimed that cash advances of Rs 90 crore were taken on November 8 from 9 pm from 5,200 customers. Declaration letters were, however, furnished for only 65 people. It was also seen that cash receipts and sale invoices for these advances were for amounts below Rs 2 lakh and did not have PAN details.
Statement of the security guard on night duty was also recorded who stated that no one had visited the premises from 8 pm onwards on November 8, 2016. The premises was under CCTV surveillance, however no footage for November 8 was available, which the director claimed had been overwritten.
From the evidences prima facie the conclusion drawn was that the two companies had facilitated conversion of unaccounted cash of beneficiaries into bullion through making dubious claims of receipts of cash advance from 5,200 pople without any evidences. The case has been also referred to ED and CBI for appropriate action.