Kozhikode: Vendors in the rural areas of Kozhikode district who accepted the demonetised notes of Rs 500 and Rs 1000 have landed themselves in trouble with income-tax officials registering cases against them after conducting raids on their premises and seizing old currencies. Owners of a number of shops, grocery outlets and supermarkets in Perambra and Kuttiyadi are now facing cases for "doing illegal business with banned currency notes."
Latheef Atheri, a rice vendor at Perambra, told DC that his shop was raided on Monday. "I decided to accept the old currency after seeing people frantically running around for essentials," he said. "We were helping them by providing the day-to-day materials without demanding new currency. We thought we could help reduce pressure on them by accepting old notes and then later depositing them in the bank." The move backfired as the I-T officials took away the money and registered cases, he said.
Another businessman in Kuttiyadi said that he accepted the old currencies not to lose business. "We will have to shut down shops for many days if we refuse to accept old notes," he said. "A majority of traders thought they could exchange them in banks. But no vendor will now show concern to the public after the IT-raids." An I-T officer from Kozhikode who was part of the recent raids said the officials had been directed to keep an eye on centers that are doing business with the old currency notes. "Our raids were based on information that the traders were selling products in the bulk in return for the old currency," he said. "Our major targets are shops selling luxury goods such as mobile phones, electronic gadgets and jewellery."
