The Income Tax (I-T) Department has said it has credible information that most cooperative banks and cooperative societies in the State are likely to funnel unaccounted cash in the run-up to the Lok Sabha elections.
According to intelligence inputs, the activities of cooperative banks have spiked post demonetisation and posed a challenge to I-T officials. The department has deployed over 200 I-T sleuths, six Quick Response Teams (QRTs) and four Air Intelligence Units (AIU) to carry out surveillance to seize black money and valuables being funnelled through legal and illegal modes, including hawala transactions.
K.K. Vyawahare, Director General, Income Tax (Investigation), Mumbai, said, “Without commenting on demonetisation, I would like to say that the move has brought a lot of difference between the 2014 and 2019 general elections. Those handling unaccounted cash have become smarter. We have put cooperative banks under the scanner as they have been found indulging in questionable activities.”
However, the I-T department’s record during the 2014 polls of converting intelligence inputs into actual seizures was unimpressive. Of the 100 inputs received on cash movements, not a single cash seizure was made in the city. The department has now urged citizens to come out in large numbers to report movement of unaccounted cash on a toll-free number (1800221510) and a landline number (022-22820562).
The department has decided to reward citizens who report cases where the seizure is over ₹10 lakh. Mr. Vyawahare, “In some cases, the information was not specific, in others, we just went round and round looking for the cash. There is a laid-down process and a form which needs to be filled for getting rewards, but it has been found that people generally do not give information for getting rewards.”
For better results this time, the department has strengthened its intelligence and monitoring mechanisms. It has put in place a robust three-tiered system with one nodal officer for analysing election expenditure and another to interface with the Election Commission of India. Expenditure officers and six sub-nodal officers have been deputed in all constituencies.
The QRTs and AIUs have been positioned strategically so that they can respond within an hour to intelligence on illegal movement of cash by candidates or their party members. The QRTs have to reach the location within an hour of receiving the information and conclude the process of seizure in around seven hours. The AIUs have been stationed at all air bases in the city — Mumbai international airport, Mumbai domestic airport, Juhu airport and Vakola — to keep strict vigil on movement of cash.
Mr. Vyawahare said, “In order to encourage the residents of Mumbai to contribute to the process of ensuring clean and fair elections, a 24x7 control room has been established by the Income Tax Department, Mumbai. We fear the cash could even move through helicopters.”
