1.Can anyone explain with simple examples what is meant by Hawala Transaction?.In How many ways these kind of transactions can be executed.Please give ur views using simple examples
CAMohinderPartapSinghAhluwalia
(Chartered Accountant)
(169 Points)
Replied 05 September 2009
Look shivam. HAWALA is banned in INDIA. In simple terms it means sending money to someone through illegal means. Eg: if you want to send Rs.10 Crore to London to Mr. A There many problems moreover there are lot of regaulations from Indian Government, RBI, Income tax Deptt. Customs etc. So the easy way is to contact a person in ludhiana who has links in London. you give Rs.10 Crore to that person in your city. he will take in addition 2% of the amount being send. Thus his agent will give Mr. A Rs.10 Crore on giving some proof which is mostly the code number written on currency note of Rs.1, 2, 5, 10 etc.
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 08 September 2009
Dear Mr. Sivaram,
In simple term Havala mean "Use of Alternate Banking System" to send money generally outside India.
Mr. Mohinder has given practical example of Hawala transactions.
FEMA and prevention of Money laundaring take care for such transactions.
Thanks
Juzer
CAclubindia
