Covid might have dried up enterprise sector, however hawala money influx continues

Express News Service
KOCHI: The Covid-induced financial disaster has dried up income sources for a lot of companies within the state. But an enormous quantity of unaccounted and hawala cash stored coming into the state by highway with the excise division alone seizing over R 4.6 crore in 2020.

Officials say the seized quantity is simply 5 to 10 per cent of the amount of hawala cash that involves the state from neighbouring states, primarily Karnataka. Throughout final 12 months, the excise division seized R4.69 crore throughout routine and shock automobile checks performed on the nationwide and state highways proper from Kasaragod to Thiruvananthapuram.

The information reveals that aside from the interval between February and June, the excise division had seized unaccounted cash in all different months within the state with July 2020 being the month through which the very best seizure of R 2.87 crore was made.

After the primary seizure of R 54 lakh black cash was made in January, the second seizure was solely within the month of July 2020.

“During the lockdown period, the hawala rackets didn’t took much risk because of heavy police presence on the roads and the high number of checkpoints put up to screen the passengers as part of Covid safety protocol,” mentioned a senior excise officer. State Excise Commissioner S Aananthakrishnan mentioned the seizures have been all made by the excise groups throughout automobile checks.

“As the department does not have the mandate to probe the seizures of hawala money, we transfer the cases to the police. The excise seizes the money only when the persons concerned fail to give proper evidence to prove its source,” he mentioned.

An Enforcement Directorate (ED) officer mentioned the post-lockdown time was one of many busiest intervals for the cash launderers as they noticed an enormous alternative to pump unaccounted cash into the market by financing small-time merchants and individuals who have been in search of funds to begin a commerce of their very own.

“As the agencies took a soft stand on checks considering the crisis, the rackets routed the funds through middle agents to local vendors for all cash deals in purchasing different commodities. We are verifying certain details to track the cash flow,” the officer mentioned.