DIMAPUR, DECEMBER 27 (India Today): Rings of launderers and arms suppliers are pumping illicit wealth into tax-exempt bank accounts of local tribes and, worse, as investments in guns in the country's remotest northeastern parts, an India Today investigation has discovered.
Last month, banned cash flew into Nagaland by the planeload, sparking a lot of scrutiny and media frenzy. But few credible leads emerged as to who actually might be turning black money into white in the farthest hinterlands - and how.
As part of its incisive exposes of underground cash mafias, India Today's special investigation reached the most distant corner of the nation's northeast and busted a racket of launderers and gun-houses trading scrapped currency.
In Dimapur, Nagaland's main city, underhanded operatives were found to be helping black-money sharks park their loot in safe hideouts.
Posing as a marble dealer, India Today's reporter met a money tout, Noor Mohammad, who agreed to facilitate stashing of void currency in accounts of tribal people.
"There are ten to 15 accounts of a single family. But you wouldn't like to have accounts from a single household. You need four or five accounts from separate people," he advised. "These Naga people pay no taxes. They don't even pay 25 paisa in taxes."
He suggested depositing money in Naga accounts in separate installments till Dec 30. "I'll get my cut. So I will have to do it for you," he remarked.
Middleman like Noor Mohammad were found to be abusing a provision of IT law that keeps tribals of Nagaland, Tripura, Manipur, Mizoram and Arunachal Pradesh outside of the income-tax net.
But Naga accounts aren't the only haven tax thieves are exploiting in the northeastern region. For them, buying weapons as instruments of investment has also emerged as a viable option, the India Today investigation discovered.
Aided by massive corruption, several firearm suppliers in Dimapur were seen organizing weapon permits even for non-residents, that too in exchange for dissolved banknotes.
Viraj of Sarmati Gun-House in Dimapur demanded Rs 1.40 lakh for a single license for a .32 pistol. "This is the license rate. "The pistol price will be separate," he explained. This shady network seemed to be well entrenched into the system.
Viraj then brought in a man, who identified himself as staff of the state's police department.
"I am a typist in police. I am in the arms section,” said David Kibami. "Don't worry. Nothing will happen."
Kibami and Viraj quickly promised to arrange a gun license for India Today's undercover reporter. "It will be made from here," Kibami said.
After guaranteeing a gun license, Viraj offered his wares to invest the reporter's fictitious black money in. "We will get it (the black money) adjusted in the weapon. By that time, you'll also get your licence," promised Viraj.
An accomplice, called Vikas, then presented his current account for Rs 80 lakh. He quoted a fee of 25 percent.
"We have to bribe the sales tax inspector as well. We have to show everything in the book. But it's a yearly account. We'll have your money settled in there," Vikas said. "There shouldn't be any problem for adjusting Rs 80 lakh. Right?" prodded the reporter.
"There's no problem for an amount up to Rs 80 lakh," Vikas replied.
