Patna: Income Tax authorities in India’s Jharkhand state on Friday began investigations into huge cash transactions in some 100 bank accounts, suspected to be operated by Maoist rebels.
The investigation comes after the rebels are reported to have deposited around Rs120 million-Rs130 million (Dh6.5 million-Dh7 million) in the bank accounts, shortly after the government launched its demonetisation drive on November 8.
The investigation began after the state police department told tax authorities about the huge transactions in those accounts, opened under the Prime Minister Jan Dhan Yojana, a national mission for financial inclusion to ensure access to financial services.
“We have the information that the Maoists deposited around Rs120-130 million in some 100 bank accounts after the government recalled the high value currency notes. These bank accounts are operating in Ranchi, Chaibasa, Khunti, Latehar, and Lohardaga regions,” a top-ranking police official from Jharkhand told the media on Friday, pleading not to be quoted for security reasons.
In many of the bank accounts, more than Rs50,000 — the maximum cash deposit limit for the Jan Dhan accounts — has been deposited, reports quoting officials said.
As per reports, the investigation being conducted by a team of bank officials will be completed within a week.
There are also reports of the rebels, distributing notes in the denomination of Rs1,000 and Rs500 among the poor villagers in Bihar state with the instruction to get them exchanged at the bank counters and return them as soon as possible to ensure their stacks of old currency notes don’t go useless.
Reports quoting local media said the rebels were handing out small amounts of old currency notes to the local villagers in areas falling under their influence.
The Maoists, reports said, believed police would not suspect the villagers if they approached bank branches with small amounts.
The Maoists, who normally keep hard cash, are believed to be in possession of approximately around Rs5 billion, which they collected as levy.
According to intelligence sources, Maoists have been collecting something around Rs3 million per month in each of the eleven zones located in Bihar. This money comes to around Rs400 million every year.
Informed sources said a lion’s share of the levy came from mineral-rich states like Jharkhand and Chhattisgarh. But, the available cash stockpile has now become a major headache for the rebels as they would go useless if they fail to get them exchanged within the set time frame.
What worried them the most was that they could face serious problems in recruiting cadres and purchasing arms and ammunitions if don’t have enough cash. They may also be soon facing a food crisis.