The Central Bureau of Investigation (CBI) on Monday carried out raids at several locations in Surat, including a local cooperative banks, in connections with large scale unaccounted-for money and assets unearthed by the Income Tax (IT) on Kishore Bhajiawala, a tea vendor turned money lender.
The CBI raided premises of Surat People's Cooperative Bank, which was allegedly used by Bhajiawala and one jeweller who had sold Rs. 60 crore gold post-demonetisation and cash was channelled through RTGS using the cooperative bank.
During the raids on Mr Bhajiawala, a well known financier who used to be a small time tea vendor in the Diamond City, Rs 1 crore cash in Rs 2,000 denomination notes was recovered besides other assets including 15 KG gold and 300 KG silver.
Following the IT raids on Bhajiawala, the central government had directed the CBI and also Enforcement Directorate (ED) to probe the high profile case, as the IT had stumbled upon documents and sale deeds of properties worth several hundred crores in Gujarat and Mumbai.
The authorities had seized over a dozen bank lockers and more than 50 bank accounts used by Mr Bhajiwala and his family members involved in a city-wide money lending activities at high interest rates.
In the instance of Rs 60 crore gold purchase from Rajni Jewellers and Kruti Creations and payment was made through RTGS by depositing demonetised currency bills. First, the deal came under the radar of Income Tax authorities, who referred it to the CBI after preliminary investigation.
"Total, 13 premises of the banks and others were raided in connection with the case of Mr Bhajiawala and also gold purchase of Rs 60 crore post demonetisation," a senior official from the CBI said.
