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LATEST NEWS UPDATES | Cash seized from ATM vans in UP by Pradeep Thakur

Cash seized from ATM vans in UP by Pradeep Thakur

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published Published on Jan 14, 2012   modified Modified on Jan 14, 2012

The Election Commission's crackdown on candidates using black money in electioneering has forced politicians to come up with innovative methods. Two ATM vans, belonging to two private banks, were seized with nearly Rs 13 crore cash in poll-bound Uttar Pradesh last week by Income Tax's flying squad, a part of which has remained unclaimed for the last four days.

The EC has written to RBI to instruct the two large private banks, for which the ATM vans were transporting the cash, to produce bank scrolls explaining the cash movement.

A senior I-T official, monitoring the seizure, claimed that till Friday evening, banks had not come forward to provide any details for at least Rs 68.40 lakh out of the total seizure from the two ATM vans. While in one case, authorities are also suspicious of the manner in which the bank had issued Rs 12.30 crore to be deposited in ATMs.

Rs 12.30 crore was issued from a private bank's branch on a Sunday (January 8), normally a holiday. Besides, there was no bank official accompanying the van which is mandatory as per RBI guidelines.

The papers recovered from the van driver at the time of cash seizure on January 9, however, revealed that the issue date of cash from the bank was January 9 and not January 8 as declared by the bank later.

The presence of Rs 8.40 lakh in the same van belonging to private persons further raised suspicion as the keys for the entire cash consignment were in the possession of the driver, who, the official said, could tamper with the money by even mixing fake currency notes.

Doubts of fake Indian currency notes (FICN) being used in electioneering have cropped up following recovery of FICNs recently in poll-bound states, including UP.

The EC has requested RBI to strictly enforce its guidelines where it is mandatory for banks to seal all cash consignments leaving the banks and a bank official should always accompany the cash with keys for the cash boxes to be in his possession.

In this case, the driver had the keys of the cash box and even this was not properly sealed. EC fears that drivers can put either fake currency or unaccounted cash to be delivered to undisclosed recipients.

Officials involved in monitoring election expenditure are also in touch with anti-narcotics agencies to keep tabs on anti-India elements pushing drugs and fake currency from across the borders.

Before a record haul of Rs 6 crore worth of fake currency notes in Delhi this week, there was a seizure of fake currency notes in poll-bound Punjab along with a heroin consignment of 6 kg coming from across the border early this month.

Earlier, the most common modus operandi used by candidates to ferry cash for their constituencies was by using local traders and their couriers. However, in view of close surveillance on businessmen and associates of politicians, innovative methods like using ATMs are being put into practice, a senior I-T official said. Last year, EC flying squads had seized several consignments of cash from the rooftops of buses in Tamil Nadu during elections.



Cash seizures in poll-bound states

UP------------------- Rs 26.80 cr
Punjab---------------Rs 8.67 cr
Uttarakhand--------Rs 42 lakh

Total-----------------Rs 35.89 cr

(Seizures are as on January 12, 2012 from the date of notification of polls)


The Times of India, 14 January, 2012, http://timesofindia.indiatimes.com/india/Cash-seized-from-ATM-vans-in-UP/articleshow/11482786.cms


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