I-T probes banks, clubs in Hyderabad to check for black money conversion

Hyderabad: The income-tax department has conducted surveys and searches on urban cooperative banks and clubs in Hyderabad, Visakhapatnam and other cities in AP and Telangana to check for black money conversion.

I-T has surveyed Vardhaman (Mahila) Cooperative Urban Bank Limited at Banjara Hills and eight other branches and all five branches of Maharaja Cooperative Urban Bank at Visakhapatnam in the past two days. The Maharaja Bank, with a turnover of Rs 140 crore a year, received Rs 6 crore as deposits in the past 10 days.

I-T sleuths also conducted surveys at the Fateh Maidan Club at LB Stadium and impounded its books of accounts. Its secretary was served notice to appear before the department on Tuesday to give evidence and to produce documents.
An Income-Tax official said, “We have kept tabs on vulnerable segments like bullion traders, urban cooperative banks, jewellers and clubs. The department is very active and working on it. We are checking whether there has been any misuse and violation of Reserve Bank of India guidelines in the wake of demonetisation. After verification, if discrepancies or any violations are found, we will be report to RBI. The surveys will continue till this weekend.”

I-T sources said, the survey has been conducted at four Urban Cooperative Banks in AP and TS. Maharaja Urban Cooperative Bank chief executive officer, R.V. Rama Raju, said, “I-T officials conducted surveys at all our five branches in Dwarakanagar, Buchirajupalem, Madhurawada, Gajuwaka and MVP Colony. From November 8 to 17, we had deposits of '6 crore consisting of old Rs 500 and Rs 1,000 notes. As ours is a small bank, they came and checked. They have asked us whether any new accounts were opened recently or any cash deposits were made in these accounts. We have submitted that there was no such occurrence. Regarding the deposits made, they are not huge when compared to other banks. The department has taken certain account books from the bank.” Fateh Maidan Club was asked to furnish the list of persons, addresses and PAN numbers of those who deposited cash after November 8.