Shehran market of Old City turns hub for illegal forex trading
ORR near Narsingi was decided upon to exchange money.
Hyderabad: The Shehran market of the Old City has again come under the radar of the law enforcement agencies after a local forex trader was reportedly robbed of $30,000 (USD) at the Outer Ring Road in Narsingi.
The incident alerted the law enforcement and intelligence agencies officials who suspect a ‘hawala’ or ‘smuggling’ angle to the deal.
The Shehran market has for several years become synonymous for smuggled goods and illegal forex traders who outnumber the people doing business legally. Right from the main thoroughfare outside the market to the interiors, several forex traders run their business.
There are about 30 traders in all, sources point out.
The traders exchange foreign currency with Indians, for a commission, in the market infamous for illegal money exchange business thriving here.
The law enforcement agencies have turned a blind eye to the happenings in the area for reasons best known to them.
Just at the entrance, one can find musclemen holding wads of Indian currency enquiring with passers by if they intend to exchange money. The business starts early in the morning and continues till midnight.
The traders exchange USD, Australian Dollar, Saudi Riyal, Omani Riyal, UAE Dirham, Kuwaiti Dinar and Euros.
As per the rules, the cash limit for exchange at any foreign currency exchange office is $800, but these rules are openly flouted in the market, sources point out.
Previously, the city police had caught gangs involved in the exchange of currency and handed them over to the Income Tax, Directorate of Revenue Intelligence or Customs Department authorities. But that has stopped now.
“We are not empowered to register cases. We just catch and handover the accused to the department or agencies concerned. Now, we are doing it only when there is a big tip off and are coordinating with the central agencies,” said a senior police official.
As per RBI guidelines and the Foreign Exchange Regulation Act, every foreign exchange transaction should be monitored and violations would be treated as criminal offences.