Demonetisation cripples hawala operations: Mumbai Police

MUMBAI: The sudden demonetising of Rs 500 and Rs 1,000 currency notes has come as a major setback to 'hawala' and 'angadia' operators in the country's financial capital, police said.

Hawala (informal and illegal money transfer) transactions of around Rs 2,000 crore take place in Mumbai every day, according to the police.

"We are closely monitoring the activities of hawala traders and angadias (cash couriers)," a senior police officer told PTI today.

Mumbai has been a traditional hub for hawala and angadia activities, operated mainly from Bhuleshwar, Kalbadevi and Opera House areas of the city.

Currency in denominations of Rs 1,000 and Rs 500 used to be sent along with gold and jewellery to places like Surat and Ahmedabad, the officer said.

However, yesterday's decision to scrap the high denomination notes has hit the hawala and angadia business badly, the officer said.

"Those having stash of unaccounted-for currency today rushed to convert it into gold, as seen from the high footfall in jewellery market," he said.

In Pantnagar area of suburban Ghatkopar, gold was sold at a record Rs 45,000 per 10 gm, he added.

Meanwhile, deputy commissioner of police Ashok Dudhe said police were monitoring activity in areas of the city which witness high-volume financial transactions. "If needed, we will deploy extra police in these areas," he added.