An investigation by the Enforcement Directorate (ED) has reportedly revealed that gold worth Rs 2,700 crore was bought with demonetised notes into Hyderabad, in November alone.
According to a report in the Times of India by Sagarkumar Mutha, 8,000 kgs of gold was imported into the city between November 8 and 30, the period that immediately followed demonetisation.
"That all this was sold can be ascertained from the fact that there was fresh import of 1,500 kgs of gold between December 1 and 10. There is a sudden spurt in the bullion market and those with high stash of the demonetised currency are buying gold from bullion traders and jewellers in Hyderabad," TOI quotes a source as saying.
Earlier this month, the IT department had raided the store of Musaddilal jewellers at Banjara Hills and found out that about Rs 97 crore had been allegedly deposited into bank accounts of the store fraudulently.
According to reports, the store owner allegedly created fake bills and showed that around 5,200 people had purchased gold at the store within an hour after demonetisation.
Most names were suspected to be fictitious, as even customers named 'Baahubali' had entered the shop to purchase gold, according to the bills.
"The accused claims that several other jewellers too have been doing the same for a long time and accuses others of doing illegal sale of gold after demonetisation," TNIE quoted a police officer as saying.
Citing this case, ED sources also told TOI that "We noticed that efforts were made to erase CCTV footage in the jeweller's shop. When we verified CCTV footage of neighbouring shops, there is no record of customers entering Musaddilal jewellers that night."
The report also added that the accused who made the gold purchases in November worth Rs 2,700 crore had gone underground.