Bengaluru: A day after Karnataka chief minister Siddaramaiah wrote a letter to Union finance minister Arun Jaitley over the non-applicability of the demonetization scheme to district cooperative banks (DCCBs) and the hardship caused to farmers and milk cooperative societies, the Income Tax department said five cooperative societies in Dakshina Kannada district had exchanged currency notes to the tune of Rs8 crore.

Surveys in several parts of Bengaluru, Goa and Dakshina Kannada districts have led to the unearthing of unaccounted money and jewellery among other items of over Rs40 crore, the Karnataka and Goa divisions of the income tax department said in a statement on Friday.

“It was reliably learnt that the cooperative societies in the district of Dakshina Kannada were accepting the demonetized notes in lieu of deposits and also converting them at a premium. Allegations were also made that the cooperative banks were willing to take back-dated deposits," the department said in its statement.

The department said it is “carefully watching" various transactions, movement of cash, jewellery and bullion after the demonetization of Rs500 and Rs1,000 notes on 8 November.