Demonetisation and black money hunting

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Black money hunting is on in full swing, post-demonetisation of high-value currency notes on Nov. 08, 2016. But major results are yet to be seen.




Demonetisation and black money hunting



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  1. A sudden move : As the government, on November 8, 2016, dramatically started its crackdown on unaccounted for and counterfeit cash, the Rs. 1000 and Rs. 500 denomination notes were rendered useless! The GoI and the RBI planned it in a manner to ensure that those with stashes of old notes were caught off guard. Once you deposited the cash, you were on the radar.
  2. Your profile is a mismatch! Online responses were sought from 17.92 lakh people. In select cases, tax profiles were not aligned with deposit of scrapped notes after demonetization (November 8 and December 30). Depositors of Rs. 5 lakh and below were not questioned except in a few cases where deposits were between
    Rs. 3 lakh and Rs. 5 lakh.
  3. PM Garib Kalyan Yojana : Field officers pursued 3.78 lakh cases. These included cases where online inquiry was ignored or responses were unsatisfactory. Searches, surveys and open inquiries were conducted. They are the people who refued to avail the black money disclosure window. Verification was closed if cash deposits were declared under Pradhan Mantri Garib Kalyan Yojana (PMGKY), a window that was open till March 31.
  4. Data Analytics will be a good career! IT department has engaged two private data analytics firms to analyse data post demonetization. These firms are expected to detect new cases. Separate probe is on in about 600 cases. Some of these are being shared with other agencies like CBI and ED. This marks the start of actual use of data analytics in Indian government activities!
  5. Black money holders get a seizure! The effect of demonetization has been that searches and seizures doubled (from 445 in 2015-16 to 1037 in 2016-17) in 2016-17. Assets seized increased from Rs.712 crore in 2015-16 to Rs. 1,416 crore in 2016-17. Undisclosed income admitted increased from Rs.11,066 crore in 2015-16 to Rs. 14,697 crore in 2016-17.
  6. Cash was king! Broad patterns of cash deposits post demonetization has been: most high-value depositors claimed cash to be sales receipts. These included jewelers, and sellers of luxury or expensive gadgets (laptops, high-end mobiles etc. When confronted by IT department, many high-value depositors claimed that the cash is the money accumulated over the years.
  7. Deep Dive : Read our Bodhis on Demonetisation here
  8. Shell companies used extensively : Agencies also noticed cash deposit in shell companies. Money moved through layers of companies, through banking channels before it reached its destination. It is believed that the operators laundered money for politicians and bureaucrats among others. This indicates that crackdown alone is not enough. It is important to trace the sources that generate black money.
  9. Election victories have put paid to all criticism : The present government has shown the resolve to take bold steps to crackdown this menace. The thumping victory in the recent assembly elections has only strengthened the government’s resolve further. The government may unleash more surprises. This time, the government would try and choke the generation of black money.
  10. Download Resources : Also, download related reports from Bodhi Resource page, here
  11. Some images for data and facts are presented below, for your reference. Studying them will give you a deep understanding of the root causes of farmers' distress, and why waivers cannot solve the same.













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Bodhi Saar: Demonetisation and black money hunting
Demonetisation and black money hunting
Black money hunting is on in full swing, post-demonetisation of high-value currency notes on Nov. 08, 2016. But major results are yet to be seen.
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