Four Mumbai bullion traders face I-T probe

FOUR MUMBAI bullion traders are facing Income Tax (I-T) probe after it was found that they had used at least 50 shell companies and individuals of “small means” to route over Rs 600 crore in old currency notes into their accounts. They had shown that the money was earned from bullion sales after the announcement of the demonetisation.

The I-T department on Friday raided the traders in the country’s oldest gold market here in Zaveri Bazaar. “Most of these companies are fictitious and were created to launder money. In case of individuals, a number of them were not even aware of the existence of the banks accounts used to launder money,” a source said.

The I-T officials have found that the traders used bank accounts of slum dwellers without their knowledge.

Raids on the bullion traders began on Thursday and continued till Friday. Sources said that officials have covered multiple premises of the traders and seized several incriminating documents. “So far, this has been the biggest raid on bullion traders by the I-T department,” said a person familiar with the development.

Officials zeroed in on the four traders after they found multiple RTGS transactions between these firms and some unknown entities and individuals. The I-T department is likely to question all the individuals, who have bought bullion from these firms after demonetisation.

The I-T department has conducted six raids across several gold markets in Mumbai over the last month and half.

On November 10, hawala operators were raided at separate places in Mumbai for illegally converting invalid currency.