Notes ban: Problem is serious, we will have riots, says Supreme Court

agencies

NEW DELHI

For the second time in a week, the Centre has faced tough questions on the notes ban from the Supreme Court, which cautioned on Friday: "We will have riots on the streets."

Chief Justice of India TS Thakur said petitions challenging the ban on Rs 500 and Rs 1,000 notes indicate the magnitude of the problem.

"You have scrapped 500 and 1,000, but what happened to the 100 rupee note?" the Chief Justice asked the government, referring to the daily scramble for cash across the country and the punishing queues outside banks and ATMs.

ATMs, the government replied, need to be recalibrated because they have a "single drawer" for Rs 100 notes. For thousands, this has meant that cash dried up long before they could reach the top of the line after several hours.

The court had more questions on the currency ban announced suddenly by Prime Minister Narendra Modi on November 8 to check tax evasion and black or untaxed money. In the past 10 days, there have been several additional announcements to ease the crisis for people.

"The last time you said you are working out relief but you have reduced the withdrawal amount to 2,000. What's the problem? Is it a printing problem?" Justice Thakur asked the government.

The government earlier this week reduced the Rs 4,500 limit for the exchange of notes at banks to Rs 2,000, saying it would enable more people to get cash.

Attorney General Mukul Rohatgi said: "Not only printing... it has to be transported to lakhs of branches across the country and ATMs have to be re-calibrated."

Rohatgi added that the government did grant relief to farmers, families planning weddings and small traders.

Representing one of the petitioners, senior lawyer Kapil Sibal, a senior Congress leader, alleged that people in villages and in the northeastern states are unable to withdraw money.

The government lawyer retorted: "Mr Sibal is making a political issue here. You can't convert this court into a political platform. Let him go outside and address people as a Congress person."

.................

Account misuse for black money can invite prosecution

PTI

NEW DELHI

Government Friday cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30.

The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse.

The government had earlier said deposits up to Rs 2.50 lakh in bank accounts would not come under tax scrutiny as it is within the tax exemption limit. In the case of Jan Dhan account, the holder can deposit up to Rs 50,000.

However, the income tax department has noted that people are under impression that no action will be taken for deposits up to Rs 2.50 lakh during November 9-December 30.

The ministry said "such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abettment under the Income Tax Act".

The government has earlier said black money deposited in bank accounts during the 50-day period will be subject to tax, interest and 200 per cent penalty.

It asked people not to be lured into conversion of black money and become a partner in the crime of converting black money into white through this method.

"Unless all citizens of the country help the government in curbing black money, this mission of black money will not succeed," the official statement said.

It also asked people to provide information of such illegal activities to the I-T department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized.

"Black money is a crime against humanity. We urge every conscientious citizen to help join the government in eradicating it," it added.

Following the demonetisation announcement of November 8, people have been queueing up in front of banks to convert and deposit the now-defunct 500 and 1,000 rupee notes.

The tax department has already made quoting of PAN mandatory if cash deposits during the 50-day period aggregate Rs 2.5 lakh or more in bank accounts.

..........

Demonetisation: SC refuses govt’s plea to stay proceedings before various HCs

Demonetisation brings former dreaded dacoit to bank in Gwalior

agencies

Gwalior

The demonetisation of Rs 500 and 1,000 currency notes has led people from all walks of life to line up in front of banks across the country in the run to get cash.

In Gwalior on Thursday, the dreaded dacoit of 70s and 80s, Malkhan Singh, too was seen lining up at a bank branch to get his old currency exchanged.

The people who queued up with him at the SBI branch in Gwalior were amused to see him.

One of the most feared outlaws of the Chambal ravines, Malkhan and his gang had 94 police cases lodged against them, including 18 cases of dacoity, 28 of kidnapping, 19 of attempt to murder and 17 cases of murder.

He had surrendered with his men before the then chief minister of Madhya Pradesh, Arjun Singh, in 1983.

Malkhan rose to prominence in 1976 after blood feud between him and village Bilao sarpanch Kailash Narayan. He tried to eliminate Narayan with a machine gun but failed, ultimately injuring two of his men and killing one. Narayan sustained six bullets wounds but survived, forcing Malkhan to flee to Jalaun in Uttar Pradesh.

After this, his name spelled terror in parts of Bundelkhand in UP and Madhya Pradesh.

The former bandit was recently in news over his biopic being shot by actor-director Mukesh R Chauksey.

Post his surrender, Singh has been leading peaceful life in his native village engaging in farming and taking part frequently in religious conventions.