Fuel pumps under IT scanner for depositing more cash than sales

Petrol and CNG pump owners and distributors of cooking gas are under the scanner of taxmen after investigations revealed serious malpractices by many of them following demonetisation.

After November 8, 2016, more than 5,000 petrol pumps across the country deposited 20% additional cash in demonetised currency notes of ₹500 and ₹1,000, over and above their recorded sale during the period.

A senior official of the income tax department said the licences of the pump owners and cooking gas distributors could be cancelled if further probes show discrepancies and illegal transactions of demonetised currency.

“The income tax department has taken serious note of the illegal transactions to thwart its efforts to clean up the economy,” a report by the department said.

The official said investigations are underway and the future course of action will be decided based on further examinations.

“We are yet to come up with the final numbers of petrol and CNG pumps that show a sale and cash mismatch… We are still investigating and will take serious action,” the official added.

The government, which withdrew high denomination currency notes, allowed their use for utility payments such as petrol, diesel and gas, besides buying airline tickets.

But there was a spike in instances of people with black money using the facility to get rid of their defunct notes. People tried to exchange them with jewellers and at petrol and CNG pumps. Many even used them to make advance payments of various services. To stop the malpractice, the government thereafter banned the use of ₹1,000 from the end of November and stopped the exchange of ₹500 notes in the first

During the summer unrest which started after the killing of Hizbul Mujahideen commander Burhan Wani, militants had often warned local policemen to stay away from protests and not harass youth taking part.

The Jammu and Kashmir police chief on Wednesday warned militants of dire consequences in case families of policemen were targeted.

Speaking to HT, director general of police, SP Vaid, said families of militants were equally vulnerable and could face consequences in case families of policemen were harassed. “We have always been nice to the families of militants and have asked them to help their children surrender and get rehabilitated, but they have attacked our families. They should realise their families also live in Kashmir only,” Vaid said.

At least 10 gun-wielding militants had vandalised the home of a senior officer in south Kashmir’s Shopian district on Monday night, warning his relatives that he should quit his job or face the consequences. Vaid said the family was beaten up and the militants broke most electronic gadgets and household items. The house belonged to an officer of the rank of a deputy superintendent of police, currently posted in Srinagar.

Vaid said the police has registered a case against the militants.