cpse etf, disinvestment, pm modi, modi govt, cpse etf ffo, strategic stake sale, indian economy
A cashier displays the new 2,000 Indian rupee banknotes inside a bank in Jammu, November 15 2016 (representational image).Reuters file

Chennai joined Bengaluru and other cities on Thursday when income tax raids on three persons resulted in seizure of cash in both banned and new currencies, besides gold. The department busted a money exchange racket that involved three persons, including an industrialist.

The seizures included old (demonetised) and new (Rs 2,000) currency notes worth about Rs 90 lakh and 100 kg of gold.

The income tax raids were conducted at eight locations in Chennai, ANI quoted sources as saying.

"The premises belong to industrialist Shekhar Reddy, his associate Srinivasa Reddy and their agents including one Prem," the Times of India quoted an income tax official as saying.

The officials of the department had information that Prem was exchanging demonetised currencies for gold bars, which led ultimately to the Reddys, the daily said.

Just two days ago, the union finance ministry had said that since demonetisation on November 8, 2016, the government has seized Rs 130 crore in cash and jewellery in 400 cases, besides admission by income tax defaulters of undisclosed income valued at about Rs 2,000 crore.

Some of the cases were referred to the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) as they involved money laundering and other crimes as well.

The cases were reported from across the country including places at Mumbai, Pune, Bengaluru, Ludhiana and Hyderabad.

Also Read