Income tax searches during Nov 8 to Dec 30 yielded no fake currency, Finance Ministry tells PAC

New Delhi: Income tax authorities seized no Indian counterfeit currency notes during the search operations drive between November 8 to December 30, Finance Ministry has told the Public Accounts Committee on demonetisation.

The Indian Express reported that to a specific question by the PAC on how many counterfeit notes of Rs 500 and Rs 1000 denomination have been seized from terrorist groups, smugglers of arms, drugs and spies until December 30, the ministry said. “No counterfeit currency have been seized by agencies under CBEC (Central Board of Excise and Customs) since 8th November 2016 till December 30, 2016.”

Of the total cash seizure between November 8 to January 4 2017, Rs 112.29 crore was in new currency. The ministry’s reply to the PAC also said during demonetisation period, the Directorate of Enforcement (ED) seized Rs 3 crore in old currencies from 67 places across India and foreign currency worth Rs 1.7 crore.

A search on 36 hawala operators across the country could bring out old currency worth Rs 1 crore, new currency worth Rs 20 lakh and foreign currency in Rs. 50 lakh.

The Finance Ministry reiterated to the PAC that demonetisation has resulted in the idle cash coming to the formal system.

More cash falling under accountability has resulted in widening and deepening the tax base, increased availability of funds with banks.

The ministry added that there has been rise in the usage of digital or cashless transactions post demonetisation,  resulting in increased transparency and easier tracking of cash.