The income tax department has began inquiry into how Surat-based financier Kamlesh Bhajiawala managed to get £145,000 in the new Rs 2,000 denomination. Sources in the income tax department said they were investigating if bank officials colluded with Bhajiawala. "It has been just a month-and-a half since demonetization," an official said. "When an individual can get only Rs 24,000 per week, how could he manage to get such a huge amount? We suspect the connivance of more people."
The income tax department, which began search operations at the office and residence of Bhajiawala on December 13, has so far seized unaccounted cash to the tune of £145,000 (all in new currency notes), gold worth £148,881 gold jewellery worth £492,963, diamond jewellery worth £ 139,345 and silver ingots worth Rs 77,81,800.
The total value of the seizures, excluding 50 kg silver, is around £1.04 million, sources said.
Besides, the income tax department has also found some 150 sets of property documents from Bhajiawala which revealed that he used to give loans against property and if the person failed to pay the loan he would have the property transferred to his name. "The documents relate to all the undisclosed property. Preliminary inquiry shows that these properties are located mainly in Surat," a source in the income tax department said. These properties include residential units and commercial establishments.
