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HomeTop NewsDemonetisation of notes: Rise in Donation to Religious trusts, NGOs, but with...

Demonetisation of notes: Rise in Donation to Religious trusts, NGOs, but with a catch

However, government is keeping a vigil on donations made to these institutions.


After the Modi government demonetised currency notes of Rs 500 and Rs 1000 people are resorting to various tricks for converting their black money into white. Those people who stashed huge amount of black money have started donating money to religious place, NGOs will give a cut to the management after few months. Many of them have started depositing money in hundi of religious places for concealing their black money. Most of the fraudulent activities have taken place in over 100 religious places and trusts in the state. Even though donations made to religious places are considered as an act of charity but the sudden rise in these activities has prompted the government to keep a vigil on such acts.

“People are heading towards religious places, trusts and NGOs to deposit lumpsum money after the Modi government’s decision to scrap notes of higher denomination. Many of them possess unaccounted money which they want to dispose for evading tax officials. However, the government is monitoring the donations made to these institutions. The audit of these institutions will be carried out soon to unveil black money,” said a senior state minister.

“These people have also taken the management into confidence and have not revealed their actual names in the receipts of donations made by them,” he said.

Some people have deposited money in cooperative banks and credit society in the state. Most of the cooperative banks are associated or directly controlled by politicians.

“Several cooperative banks are operating locally and cater to the needs of local residents. Some people have managed to obtain fixed deposit receipts by depositing unaccounted cash in lakhs of rupees,” the minister said.

“The Fixed deposit receipt is issued manually in most of the cooperative banks. Many people have managed to get back dated receipts in order to prove that they had opened FD before demonetisation of higher denomination currencies. For addressing this issue, the government will monitor rise in cash reserve of these banks. If there is any discrepancy action will be taken against officials,” the minister added.

On the other hand, many people had booked executive class tickets of Air India after the centre’s decision to scrap Rs 500 and Rs 1000 notes. Huge queues were also witnessed at railway stations for booking train tickets. According to railway officials there has been a surge in booking of railway tickets.

Since the government had announced that the old currency notes will be accepted at railways and airlines for 72 hours people are booking tickets and taking unfair advantage of the facility.

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