After the government’s move to remove black money from the
financial system by demonetisting high value currency, the Income Tax
department has conducted raids on black money hoarders across the country. 
The raids were conducted on jewellers, currency operators and hawala traders in
Delhi, Mumbai, Chandigarh and many other cities, sources said.

Officials said the operations were being carried out at four locations in the
national capital, including popular market places like Karol Bagh, Dariba Kalan
and Chandni Chowk, three locations in Mumbai and few others in Chandigarh and
Ludhiana.

Till the reports came in, similar survey operations by IT authorities are also
understood to have been launched in two cities in South.

The sources said the department had received information that some traders,
jewellers, currency exchanges and hawala dealers were allegedly profiteering by
exploiting the recent currency demonetisation of Rs.500 and Rs.1,000 notes and
were changing currencies at discounted prices.

The raids are been conducted in cases where heavy cash transactions have been
noticed. Many traders have reportedly been taking old notes of Rs.500 and Rs.1,000
even after they were banned from circulation, the sources added.

Jewellers have been selling
gold at a premium by selling Rs 50,000 per 10 gm against the going rate of Rs
30,750 per 10 gram. Dollrs touch Rs 100 in local hawala market, as per reports.

Demand for jewellery went up immediately after Prime Minister Narendra Modi
announced tough measures to curb black money on Tuesday night. There
were reports of jewellers issuing backdated invoices to the customers to avoid
coming under scanner.

Jaitley had on Thursday warned people will large amount of
undisclosed money won’t be spared and will have to face the consequences under
the tax laws”.

According to sources, the government will scrutinise the annual
return filing of individuals who make high value deposits to the banks
while exchanging old currency notes. The Income Tax department will take
up the case for scrutiny in next 50 days, the sources added.