Baahubali Gold Scam: Detected by IT Department

With the Income Tax raids being done these days many scams are being brought into the light where loads of new cash deposits are found in many instances. As part of the same, IT department conducted uninformed seaches in most of the popular jewelry stores where they found the illegal purchase of gold using demonetized currency.

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At Mussadilal one of the reputed jewelry stores, with the help of CCTV footage in the stores, officials found that on the day Modi announced demonetization on, an unusual number of customers, about 5000 purchased gold from an hour later the demonetization declared to the midnight. The purchase was found to be worth 100 crores which were not associated with any ID proof.

As per IT Act, jewelers should procure valid ID proof from the customer for a purchase exceeding a certain amount. When asked about not taking ID proof for the transactions on the day mentioned above, Musaddilal Jewellers replied that all those transactions were worth below 2 Lakhs which doesn’t require proof. Inquiry revealed that all the transactions made on 8th November were split into multiple purchases.

The irony is that the Names of the customers given were suspicious and one bill was named under “Baahubali’ which shows the manipulation made by the jewelry store.