From chicken shops to snack sellers, I-T knock on Surat doors

Sagar Modi, who runs an airconditioner and refrigeration services shop in the basement of a building in Sagrampura, was also raided reportedly after failing to reply to an I-T notice.

Written by Kamaal Saiyed | Surat | Updated: March 26, 2017 5:56 am
Operation Clean Money, income tax, income tax department, black money, income tax queries, indian express news, india news, business news The city saw over Rs 18,000 crore of deposits after old notes were scrapped. The Surat district cooperative bank topped among all the banks, with deposits of Rs 340 crore. (Express photo by Vasant Prabhu)

As the March 31 deadline for depositing unaccounted money under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) draws closer, the Income Tax department has started raiding small Surat traders who deposited huge amounts of cash. Surat has so far seen disclosures amounting to Rs 100 crore under the PMGKY.

The traders who have faced I-T action include cosmetics sellers, chicken shop owners, grocers, footwear shop owners, tobacco and cigarette traders, vegetable vendors and airconditioner repair shops, after officials collected data of those who had deposited more than Rs 2.50 lakh in bank accounts post-demonetisation, and not responded to I-T notices or summons.

The city saw over Rs 18,000 crore of deposits after old notes were scrapped. The Surat district cooperative bank topped among all the banks, with deposits of Rs 340 crore.

The first small trader in I-T net was a tea and snacks seller, Kishore Bhajiyawala, from whose house and office the department claimed to have seized Rs 3.54 crore. Officials said they found he was a financier, running a firm in the name of his son Jignesh Bhajiyawala. Enforcement Directorate officials arrested Jignesh on January 20 from Surat and he remains in judicial custody.

On Monday, I-T officials raided a potato chips distributor in Katargam area of Surat, reportedly after he deposited Rs 1 crore in cash in his bank account after demonetisation. A few days ago, Alishan Chicken Centre in Saiyedpura was raided after its owner Abdul Jabbar deposited over Rs 1 crore post demonetisation and did not respond to I-T notices.

Refusing to talk about the amount he deposited under the PMGKY, Jabbar told The Sunday Express, “We bring chicken from poultry farms in Jalgaon district in Maharashtra and sell it here in local markets. We do not make much profit. This is the first time the I-T Department carried out raids on my shop. Now we are on guard and will maintain clear accounts.”

Sagar Modi, who runs an airconditioner and refrigeration services shop in the basement of a building in Sagrampura, was also raided reportedly after failing to reply to an I-T notice. Sources said the firm’s account books disclosed a monthly income of Rs 1 lakh but Modi had deposited Rs 17 lakh in his account post demonetisation. Sources said Modi was also a contractor for servicing of ACs and refrigerators.

Modi said they had never been raided before. “We have suffered huge losses, and are afraid some other agency will also target us.”

Top sources in the tax department said they were also investigating the case of a 65-year-old woman who had a Rs 5,000 balance pre-demonetisation in her bank account, and later, saw a Rs 25 lakh cash deposit in it. She was questioned a couple of days ago.

Sources said the woman has claimed that the money was her son’s, and that he had given her the Rs 25 lakh and told her not to disclose this to his wife. Soon after, she said, he had died, and she was stuck with the money.

The other cases under investigation include that of a grocery and provisions store, a woman vegetable vendor, a footwear shop owner, a cosmetics shop, an oil depot and a tobacco cigarette trader, a pharmacy shop, and a furniture shop, with deposits ranging between Rs 35 lakh and Rs 10.32 crore.

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  1. M
    M. Lakshminath
    Mar 26, 2017 at 7:44 am
    IT is sleeping all these years as they were paid handsome amounts, now they are forced to raid as handsome amounts are no more coming
    Reply
    1. T
      Tushar
      Mar 26, 2017 at 5:59 am
      Surprisingly none of the politicians are not targeted .may be they all donated their money to the party in anonymous names in a condition to take back when all waves are over
      Reply
      1. B
        b Sastry
        Mar 26, 2017 at 2:19 am
        What about street corner doctors and Kirana merchants who never give any receipts.
        Reply
        1. H
          harun
          Mar 26, 2017 at 4:16 am
          All these steps are welcome.Jai ho.lt;br/gt;lt;br/gt;It was these very people who saw virtue and honest intention in demonitisation.lt;br/gt;lt;br/gt;Yes all these guys who made big money but did not pay a Paise in Tax need to be jailed.as the ry cl has thus far been paying taxes honestly.lt;br/gt;lt;br/gt;But do these jokers who give certificates for Integrity,probity and Good Governance asking how was the mive Poll campaign in UP run for 45 days.lt;br/gt;lt;br/gt;Arre bhai we had a report which said 67000 volunteers from all over India were put up in UP.lt;br/gt;lt;br/gt;If u say it cost 500/person/day for Food/drinking water/stay.Then it will cost 67000 x 500 x 45=150 crores.lt;br/gt;lt;br/gt;How was all this Money accounted,was all the expenses paid by cheque/PayTM or RTGS.lt;br/gt;lt;br/gt;All these are being ignored as people are playing into the hands of slogans and Promises.lt;br/gt;lt;br/gt;Till date we are yet to hear about a single Neta being QUestioned for deposits post demonitisation.lt;br/gt;lt;br/gt;So we must all accept that none of the Netas who fly around in PvT Jets and Choppers have no dirty cash.
          Reply
          1. H
            harun
            Mar 26, 2017 at 5:57 am
            They may have dirty cash is what you say.lt;br/gt;lt;br/gt;How do u think the 67000 volunteers expenses for 45 day capaign met in UP.lt;br/gt;lt;br/gt;May be by Cheque/RTGS/PayTM.lt;br/gt;lt;br/gt;Its 150 crores.
            Reply
            1. H
              Harminder Singh
              Mar 26, 2017 at 2:06 am
              At least it will deter people from stacking large sums of money
              Reply
              1. H
                Harminder Singh
                Mar 26, 2017 at 2:03 am
                Big fish Sirs?
                Reply
                1. K
                  kumar
                  Mar 26, 2017 at 4:37 am
                  Surprisingly both IT and ED have not come across a single case in their own departments. And that really stinks.
                  Reply
                  1. M
                    Mitul
                    Mar 27, 2017 at 4:53 am
                    Harun well said...lt;br/gt;Do what i said ...not what I do...lt;br/gt;Hypocrisy at top...and ignorance in people. Is sad...lt;br/gt;One would ume they would raid adani,anil Ambani for illegal activity scams.....but they won't n cant b procecuted...
                    Reply
                    1. M
                      madhu
                      Mar 26, 2017 at 1:44 am
                      Leaving white collar elephants catching ants
                      Reply
                      1. S
                        Shashi
                        Mar 26, 2017 at 3:55 am
                        What about Mumbai and Thane region.What about political goondas who forcibly encroach on other peoples land and property and earn crores.This people are getting big fat hafta and illegal rents every month by haring the weak. They got their money exchanged by forcing the poor slum people to exchange it for them. They rule by terror.No law or rule for such people. The actual owner of land actually suffers because his name is on the property.But he cannot even step on his property because of attacks and threats. Demonetization has failed to target such goondas. In fact with no accountability they have grown more powerful after demonetization and have now become a organised gang with the patronage of political godfathers. They have political support and support of the establishment. In coming days we are going to see more such gangs getting powerful and getting their men in higher position of office.
                        Reply
                        1. T
                          Tejas
                          Mar 26, 2017 at 5:10 am
                          gt; So we must all accept that none of the Netas who fly around in PvT Jets and Choppers have no dirty cash.lt;br/gt;lt;br/gt;Agreed. The super-rich and politicians have no black money, especially the Modi government which is like super-clean and don't talk about UP campaign cost, all the volunteers paid from their own wallet. Modi is the new God, don't question him!
                          Reply
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