NBFCs and cooperatives in Mumbai are under IT radar

New Delhi: The income tax officials who have conducted a number of raids to unearth benami properties have brought two new area under close scrutiny-- Non-banking Finance Company and Co-operative. Both are suspected to have been largely used for money-laundering in the wake of demonetisation.

Mumbai has a number of cooperative societies and NBFCs and ,therefore, it has been put on the top of the list. Four cooperative and NFBCs have been already identified in this connection and action against them would be initiated soon.

All these have flouted Reserve Bank of India rules and opened accounts without verifying addresses and other necessary details. Multiple accounts have been opened by some of them and a large amount of black money allegedly parked.

Some of these institutions have opened back -dated fixed deposit accounts to turn black money into white.

Some others have provided personal loans to people close to them. These deals are also suspicious.

In all, there are 9000 transactions which, prima facie, appear dubious.