ED Keeping an Eye on 67 Forex Dealers Exchanging Old Rs 500 and Rs 1,000 Notes

New Delhi: Widening the probe into illegal money changers, the Enforcement Directorate is keeping track of as many as 67 forex dealers across the country to look into foreign exchange violations and money laundering after the government scrapped old 500 and 1,000 rupee notes.

In a parallel manner, the Income Tax Department conducted surveys across the country to check hawala money exchange while DGCEI visited big jewellers to examine stock and sales details.

ED is looking into foreign exchange violations and money laundering by prominent money exchanges across the country, Revenue Secretary Hasmukh Adhia said on Friday.

Besides, the Directorate General of Central Excise Intelligence (DGCEI) has surveyed big jewellers across cities in India, he said.

"ED is conducting surveys on 67 forex dealers for checking possibility of illegal money change in lieu of old currency," Adhia said.

The Income Tax Department is also looking into those cases where the hawala route is used to exchange the old currencies.

Instances of people giving Rs 500/1,000 notes in hope of getting the new valid currency back at a discount have also come under the tax department scanner, which is keeping a watch, sources said.

Amid rumours that the tax department is also conducting surveys in steel sector, the sources clarified that so far only jewellery, money exchangers and charitable trusts are on the government radar.

DGCEI has sought information on sales and stocks of big jewellers between November 7 and 11.

"DGCEI is checking stock holding and sales by jewellers between November 7 and 11 to see if there is any sudden spurt following the demonetisation announcement," a source said.

The tax department has found proof that desperate attempts are being made to convert the hoarded black money. Tax sleuths have visited business premises of the traders and analysed the available stock.

In its biggest crackdown ever on black money, the government on Tuesday night announced demonetisation of Rs 500 and Rs 1,000 notes and asked people holding such notes to deposit in bank accounts.