Not Worth Two Takas

HEARD the story where crisp currency notes were left at the mercy of insects while no one was willing to take responsibility, not even possession? If you haven't, take a trip to the office of the customs collectorate at Guwahati, where Bangladeshi currency worth over 2 crore taka is lying for the moths. This is the cash that the customs department has seized over the last few years from infiltrating Bangladeshis.

All efforts by the customs to get rid of the cash have come to naught. Freeing itself of the currency is important as the department, officially, is not the guardian of foreign exchange in India. Other agencies—the RBI, and State Bank of India (SBI)—pointing to various provisions of law and, for reasons of propriety, have also failed to find a solution. The result: while the notes await a final decision on their fate, insects are making merry.

The essence of the problem is that none of the agencies involved are quite sure of what to do with the seized money. The ambiguity of the law on what customs can do with the currency in the absence of an agreement has complicated matters further. The problem began when the money was sought to be handed over by the North-east customs collectorate to the RBI. However, the Guwahati regional office of the central bank refused to accept the cash since there is no understanding between the Bangladeshi and Indian governments regarding seized currency. Had the RBI accepted it, the notes would have probably met with the same fate in its own vaults.

Between India and Nepal, for instance, an equivalent amount in hard currency is returned to the country that gives the seized local currency, a practice which has worked without a hitch. However, there are no problems when the customs seize dollars, pounds, yen or such currencies; since they are freely tradeable, the question of getting rid of them or wondering what to do with it just doesn't arise.

Probably, only one option has not be explored. Who will be liable if the notes are gulped completely by the moths?

When the customs did explore the option of sending the taka back to its home country, it found that the amount is liable to the seized by the customs in Bangladesh. Earlier, when customs officials had written to the RBI seeking advice on what to do with the growing stock of currency, the imaginative central bank suggested that the notes be destroyed.

The customs collectorate, however, did explore a few options after the regional office of the RBI decided not to accept the cash. It approached the SBI so that the foreign currency could be deposited there. The SBI officials, much to their chagrin, refused to accept the pile of currency. Reason: such a huge amount of cash cannot be accepted by the bank. If the customs officials wanted, they could split it in packets of smaller amounts and each of them could be sent seperately.

Not quite in the mood to give up, the customs officials decided to take upon themselves to find a solution. A sample of suggestions on how to get rid of the rotting currency: Give it back to the Bangladesh government in some form of aid;

Give back the money to the Bangladesh government exclusively for developing the land custom stations along the border;

Destroy the currency notes (this one from the RBI); and Use it for improving customs infrastructure along the Bangladesh border.

The department is earnestly searching for solutions as the moths are praying that none should ever be found. Any ideas?