The Enforcement Directorate (ED) conducted an extensive 11-hour raid at the residence of DMK General Secretary and Tamil Nadu Water Resources Minister Duraimurugan in Vellore district on Friday. The raid started in the afternoon and ended at 1:35 AM on Saturday.
Investigation into Money Laundering and Bank Fraud
This raid is part of the ED’s ongoing probe into a money laundering case linked to violations of Reserve Bank of India (RBI) guidelines. The focus is on misconduct by bank officials during the demonetization period. These officials are accused of facilitating illegal exchanges of Rs 200 notes for higher denomination Rs 500 and Rs 1,000 notes. Consequently, this malpractice allegedly helped individuals bypass government restrictions intended to reduce black money and counterfeit currency.
Raids at Multiple Locations
The ED raided four locations in Vellore district, all connected to Duraimurugan and other individuals involved in the case. These raids are part of the ED’s larger effort to uncover the full extent of the irregularities and identify all those involved in the illegal currency exchange.
Demonetization and Its Goals
On November 8, 2016, the Indian government demonetized Rs 1,000 and Rs 500 notes to address various economic challenges. The goals were clear: eliminate black money, stop the circulation of counterfeit currency, curb terrorism financing, formalize the informal economy, expand the tax base, and promote digital payments to reduce dependence on cash.
