Fake currency smuggling halted post note ban: FinMin to PAC

TIL Desk/Business/New Delhi-Finance Ministry on Friday informed a Parliamentary Committee that smuggling of fake currency has totally stopped post demonetisation and the tax department has seized Rs 515 crore in cash, including Rs 114 crore of new currency notes, up to January 10.

According to sources, in its response to the Public Accounts Committee over queries on demonetisation, the Finance Ministry said it has also detected undisclosed income of Rs 4,172 crore in search and seizure operations between November 9-December 28, 2016.

Banning of 500 and 1000 rupee notes was intended to curb terror financing and as per the Intelligence reports the smuggling of fake notes has come to a “total halt”, the finance ministry has said. The tax department has taken 980 intrusive actions which include search and seizure operations since November 8.

The purpose of demonetisation, the ministry said, was to put an end to subversive activities such as espionage, smuggling of arms and other contrabands into India, besides eliminating black money.