Specific intelligence was gathered that in Madhya Pradesh, many persons with unaccounted cash were purchasing jewellery and the jewellers were accepting old notes. Search actions were conducted on three jewellers. The irregularities found during search actions are as under:
- One entity with annual turnover of approx. Rs. 8 crore had booked sales of more than Rs. 17 crore in first week of November, out of which Rs. 10.7 crore were booked as advance against future sale.
- Instances were detected where bills of large amount of sale were been split in multiple bills of less than 2 lakhs each.
- The names of customers on these bills were found to be partial and incomplete.
- The sequence of bill and the time of sale did not match in a coherent way. For example bill number 1001 was issued prior to bill number 1000 pointing to deliberate backdating.
The jewellers admitted undisclosed income of more than Rs.15 crore.