No counterfeit notes seized during raids conducted in demonetisation period of 50 days, says Fin Min

By : 21-Jan-2017
Finance Ministry

In its submission to the Public Accounts Committee on the details of the seized currency during the raids conducted from November 8 through December 30, the Finance Ministry has noted that while a total amount of 474.37 crore has been seized by the Income Tax department in new and old notes, however, it said it has found no information to conclude that the persons from whom the money has been seized are terrorists or smugglers.

The submission also revealed that there is a 136 percent increase in the number of groups searched than the last year, a 100 percent increase in the seizure of valuables and a 51 percent increase in the undisclosed income admitted during the period April – December 2016, compared to the corresponding period in the last year.

The Finance Ministry also disclosed in its submission to PAC that there is 12.01 percent rise in the net collection of direct tax, a net growth of 24.6 percent in personal income tax collections and 14.4 percent rise in the advance collection than what was recorded during the corresponding period last year.

According to a note given by the RBI to the Parliament’s Department Related Committee of Finance, regarding the widespread reports of usage of fake currency for terrorist activities financing and drug financing, the note said, “It occurred to Government of India and the Reserve Bank that the introduction of new series of notes could provide a very rare and profound opportunity to tackle all the three problems of counterfeiting, terrorist financing, and black money by demonetising the banknotes in high denominations of Rs 500 and Rs 1000 or by withdrawing legal tender status of such banknotes.”

Further on February 10, the four secretaries from the ministries of Revenue, Expenditure, Department of Economic Affairs and Department of Financial Services are expected to be present before Public Actions Committee for reporting purposes.   

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