Shopkeepers in the Walled city’s Chandni Chowk area today closed down their shops early following “rumours” of raids by income tax department.

As soon as the information of raids spread, even small shopkeepers in the lanes and bylanes of the area hurriedly pull down the shutters fearing action.

Sanjay Bhargav, general secretary of Chandni Chowk Sarv Vyapar Mandal, said there were strong rumours of raid and shopkeepers were not sure whether it was by IT or Sales Tax department.

“All the shops including those in narrow lanes and bylanes of different markets in Chandni Chowk were closed by around 3.30 PM. Shopkeepers went home after closing there shops for the day,” he said.

People who had gone to the markets for shopping were asked by the confused shopkeepers to leave the area citing the raids.

“I had come to Chandni Chowk for shopping but all of a sudden shopkeepers started pulling down the shutters of their shops. Nearly 90 per cent shops in the market were closed in a few minutes,” said a Rohini resident, Subhash.

Income Tax department today conducted multiple raids in Delhi, Mumbai and other cities in the wake of reports of alleged profiteering and subsequent tax evasion by traders by converting withdrawn currency notes in an illegal manner.

According to department officials, the operations are being carried out at least at four locations in the national capital including popular market places like Chandni Chowk, Karol Bagh and Dariba Kalan.

In a surprise move, Prime Minister Narendra Modi had on November 8 announced demonetisation of Rs 500 and Rs 1,000 currenct notes and introduction of the new Rs 500 and Rs 2,000 ones with additional security features.