Businesses in Hyderabad under I-T lens for alleged hawala transactions ahead of general elections

New Delhi: Some areas of Begum Bazar and Sultan Bazar in Hyderabad are reportedly witnessing a significant rise in hawala transactions since the election schedule has been declared. This has now come under the lens of the Income-Tax department and Task Force sleuths, the Times of India reported.

According to the ToI report, on March 12, Hyderabad Task Force had seized Rs 90 lakh cash from four hawala operators in Begum Bazar and Sultan Bazar. Sources in I-T department told the daily that it is estimated that Rs 2,000 crore of hawala transactions carry out for distribution to voters during polls where all political parties are involved in Telangana alone. While in Andhra Pradesh, the amount is as high as Rs 3,000 crore.  

During 2018 assembly elections, five teams of Hyderabad Task Force seized Rs 26 crore. This was most of the hawala money that came out from Begum Bazar, Feelkhana, Abids and Sultan Bazar. Those arrested in connection with this case were wearing special jackets which had pockets inside with each jacket capable of holding Rs 1 crore in cash.      

Radhakishan Rao, Hyderabad Commissioner’s Task Force deputy commissioner of police while explaining the modus operandi of hawala operators told ToI: "During elections, there is a spurt in hawala operations which is about 50 times more than the normal. For every one lakh, the hawala operators collect Rs 600 as commission. The key players operate from Mumbai and Delhi and the local operatives collect cash from the traders, both retail and wholesale as well as daily cash-generating businesses like kirana merchants and panshops.” 

In one of the 2018 case, police found that native of Rajasthan Balwanth Singh is living in Hyderabad after he suffered losses in the bangle business. He started networking with transfer agents of hawala money in India. On a commission basis at the rate of 0.6 per cent to 0.8 per cent, his network operates from Ashok Bazar, Gowliguda and Gujarati Galli, Koti. 

According to the report, I-T department investigators are working to identify key operators in this hawala activity of the city. Most of the money used in this is transported through two-wheelers within the city. Four accused Devesh Kothari, Bhakti Prajapati, Khan Ilal Naseem and Vishal Jain were detained on March 12 with cash and counting machines while they were transporting the money.

On the condition of anonymity, a money mule in Hyderabad told ToI, “during hawala transaction as a code of identification, we send a picture of a one hundred rupee note or fifty rupee note or Rs 5 note with unique currency serial number on it. The money collector has to reveal the number and collect the money. It’s all based on trust. We are paid monthly salaries and in hawala transactions, our handlers get Rs 60,000 to Rs 1 lakh per every one crore. During the election time, the commission amount increases due to the risks involved.”