I-T raids follow gold rush in city

This raid was being conducted as part of a nation-wide scrutiny which the Income Tax department had begun on Thursday. Official sources here told DTNext that raids were conducted at jewellery stores following reports regarding large-scale cash transactions for gold purchase made without proper bills. I-T sleuths started the raids at 5 pm at these stores and sources said it would continue at other retail outlets across the city. The primary aim of the raids was to identify major purchasers and also to detect large purchases carried without proper bills.  The jewellery stores in Chennai had witnessed a huge rush on October 8, immediately after the announcement of demonetisation. 

Most stores had remained open till the wee hours of the next day and reports suggested that crores of rupees’ worth jewellery were purchased by people who rushed to convert the currencies that they had been hoarding to purchase jewellery. I-T department sources said the computer records and bill records of stores would be checked. Meanwhile, a message circulated on WhatsApp group of Income Tax officials have been widely shared. The message stated that all bank locker owners would be called between January 1 to January 17 by their respective banks and the I-T department would take stock of the jewellery in the bank lockers.  However, the authenticity of the message was not confirmed by the department though it created panic among the people. Central Excise Intelligence sources said surprise raids were being conducted at all the major jewellery shops in the state since Thursday. The stock and sale details of gold jewelleries, from November 7 onwards, were being verified. Also, it is being verified if gold, imported through illegal channels, was being used for manufacture and sale of jewellery. A report from New Delhi said excise officials have summoned details of sale of the yellow metal and ornaments from over 600 jewellers across 25 cities.

The government on Friday extended the use of Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees as well as for purchases from co-operative stores by another 72 hours to November 14 as it struggles to make available alternative currency. While demonetising Rs 500 and Rs 1,000 notes from midnight on November 8, the government had allowed the use of the currency at government hospitals, railway ticketing booths, public transport, airline fare, milk booths, crematoria/burial grounds and petrol pumps for 72 hours. This list was later expanded to include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, ASI monument entry tickets, electricity and water bills. Meanwhile, the government announced that no toll would be charged on national highways till the midnight of November 14. Earlier on November 9, the government had announced the suspension of toll collection on national highways till November 11 midnight. The government extended the duration on Friday.