Black money hoarders find escape route in dollars, via farms in Punjab

Foreign currency is being bought from farmers in exchange of scrapped notes through moneychangers, who charge up to 30% for striking the deal
Updated on Nov 14, 2016 11:37 PM IST
Copy Link
Hindustan Times | By, Ludhiana

The demonetisation of high value notes by the Narendra Modi government has suddenly made money-changers active in managing the black money.

Besides investing in gold, Ludhiana industrialists are buying foreign currency to adjust their black money. Since agricultural income is exempted from income tax, hoarders are buying dollars from the farmers, which they get from their relatives in the US, Canada and the UK, through money-changers, who charge between 25% and 30% of the cut for the entire transaction. The farmers in turn are depositing the cash (old notes) in their savings account.

Also read | 2 men arrested with fake Rs 2,000 notes in Punjab’s Tarn Taran; planned to use printouts

Sources say traders are buying US dollar for Rs 80-85 whereas 1 US dollar equals around Rs 68. A hosiery trader in Ludhiana recently purchased around $300,000 from two money-changers for Rs 2.5 crore (in scrapped Indian currency) while the actual value of the foreign currency was Rs 2 crore. The farmers who agreed to sell dollars and money-changers shared the Rs 50 lakh between them.

While the farmers conveniently deposit the money they had taken from black money hoarders in their savings account, the hoarders will keep the foreign currency with them till the market stabilises and will later sell it as per the trading value of the Indian currency in the market.

Meanwhile, Ludhiana traders are asking their employees to stand in queues at bank counters and get the scrapped notes exchanged. For an exchange of Rs 4,000, the employees get between Rs 200 and Rs 400.

Vice-chairman of the National Productivity Council Badish Jindal said: “A majority of black money hoarders are paying their workers to stand in queues for hours and get the currency exchanged.”

Must read | Desperate housewives forced to reveal secret savings to hubbies


    Sumeer Singh is a staff correspondent at Ludhiana. He covers industry, transport, district courts and sports.

Close Story

Less time to read?

Try Quickreads

  • Faridkot Modern Jail superintendent Joginder Pal was placed under suspension on Thursday, a day after a clip of Canada-based gangster Sukha Duneke’s aide making a video call from the jail was widely shared on social media. (HT file photo)

    Faridkot jail superintendent suspended after gangster’s video on social media

    Faridkot Modern Jail superintendent Joginder Pal was placed under suspension on Thursday, a day after a clip of Canada-based gangster Sukha Duneke's aide making a video call from the jail was widely shared on social media. Also read: Navjot Sidhu assigned role of clerk in Patiala jail On Wednesday, the police had booked accused Karan Sharma, who is lodged in Faridkot jail, under the Prisons Act after a mobile phone was recovered from him.

  • The victim’s father told police that the accused are habitual offenders and killed his son with the intention of looting him. (Representative image)

    Body found on railway tracks in Ludhiana: 3 held for murder

    Eight days after the body of a 35-year-old man was found on the railway tracks near Jassian village, three men were arrested for Harwinder's murder on Thursday. Two of the suspects, identified as Sohan Kumar alias Baba and Akhilesh Pratap Singh alias Shubham alias Murda, were arrested by the CIA staff while Deepak alias Kayua was arrested by the Government Railway Police, Ludhiana. The family of the deceased was also called for identification.

  • To supply the soldiers with a variety of meat diet, and yet to spare the feelings of the natives, Moore recommended that the dietary habits of the soldiers needed improvement. (REPRESENTATIONAL PHOTO)

    Taste of Life: When horse sense guided hygiene of British troops in India

    Sir William James Moore came to Poona sometime in 1846. He headed the London School of Hygiene and Tropical Medicine and was the personal physician to the Queen and the Viceroy of India. He was entrusted by the government to produce a manual that would lay down the principle of sanitation and hygiene for the British troops in India. The troops stationed there were considered the healthiest. But Moore thought that they were overfed.

  • The leaseholders of the mines said they are being contacted for red sandstone by people involved in Ram Mandir construction. (Representational Image)

    Rajasthan approves 12 pink sandstone mines, to ensure supply for Ram Mandir

    The Rajasthan government has granted environmental approval to 12 mines in Bansi Paharpur area in Bharatpur district from where pink sandstone is being supplied for the construction of Ram Temple in Ayodhya, officials said. According to officials, the state's mines department had e-auctioned 41 mining plots in Banshi Paharpur area in November-December 2021. The state mines department started preparing mining blocks in Banshi Paharpur and started preparations for their auction.

  • Punjab chief minister Bhagwant Mann during his meeting with British High Commissioner to India Alex Ellis.

    'Excellent meet with youngest-ever Punjab CM': British High Commissioner on Mann

    Punjab chief minister Bhagwant Mann on Thursday met British high commissioner to India Alex Ellis at Ellis' residence in Chandigarh to discuss on partnerships with the UK government in various sectors. The chief minister even flagged the need for direct flight between Punjab and UK. Punjab and the United Kingdom have agreed for further tie ups in agriculture, information technology, food processing, higher education, sports, public transport (electric buses) and biomass sectors.

Story Saved
Saved Articles
My Reads
Sign out
New Delhi 0C
Thursday, May 26, 2022