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Underground Traders In Kerala Take Advantage Of State’s Love For Gold To Convert Black Money Into White
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Some underground traders are taking advantage of Keralites’ love for gold to convert their black money, a media report has said.
A parallel gold trade worth about Rs 5,000 crore, expected to be nearly 20 per cent of the total gold business in Kerala, is thriving with these traders buying off the gold Keralites have pledged with finance companies.
Malayalam daily Manorama reported that these traders even pay the outstanding interest for the pledged gold and are believed to have a vast network.
The report quoted a former revenue official saying that the traders were buying the gold as they are unable to invest their stashed black money anywhere else since demonetisation.
It has worked in favour of these black money hoarders, and at the same time has made the jobs of Income Tax officials difficult.
The gold thus accumulated by the traders is therefore sold legally to convert black money turns white whether it is sold to a jeweller or in retail.
These tactics are said to be similar to what some people restored to following demonetisation. Absconding Diamantaire Nirav Modi too has been accused of facilitating such operations.
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