A whopping ₹5,400 crore worth of “undisclosed income” has been detected by law-enforcing agencies till January 10 since demonetisation came into force last November, the government has told the Supreme Court.
It also made references to “various malpractices” which came to fore post demonetisation, including the use of old currency notes for buying gold.
Giving details about the raids and recoveries by the law — enforcing agencies, it said that after the demonetisation period of November 9 to December 30, 2016, the Income Tax department had initiated “Operation Clean Money” on January 31 to leverage technology and data analysis for e-verification of the cash deposits made during that period.
The Ministry of Finance in an affidavit said that between November 9, 2016 and January 10, 2017 alone, there were more than 1,100 raids/surveys conducted by Income Tax Department on various persons.
During this period, over 5,100 notices were issued for verification of “high value suspicious cash deposits made in bank accounts”, it said.
“As a result of the raids and other strict measures enforced, more than ₹610 crore in cash (including cash of ₹513 crore out of which ₹110 crore was in new currency) and valuables were seized by the IT Department and other government agencies.
“The undisclosed income detected in the above actions was more than ₹5,400 crore,” the affidavit said.
It said that out of 1,100 raids and surveys, more than 400 cases were referred to the Enforcement Directorate and the CBI for further action in accordance with law.
“The exercises have resulted in the identification of approximately 18 lakh persons for such online verification, who appeared to be not in line with tax-payers’ profile. At present, more than 12 lakh online responses from 8.38 lakh distinct PANs/persons have already been received.
“It is submitted that in case there has been due explanation, the verifications are being closed after proper analysis and examination. Similarly, where there have been deposits made in Pradhan Mantri Garib Kalyan Yojna (PMGKY), then also the verifications are being closed.
“It is further submitted more than 3.78 lakh out of the approximately 18 lakh high-risk cases have been detected and taken up for assessment and investigation,” it said.
