Bengaluru: ED seizes Rs.93 lakh in new currency notes

Seven persons, one relative of government engineer SC Jayachandra, have been reportedly arrested for their alleged involvement in the money conversion racket

Bengaluru: ED seizes Rs.93 lakh in new currency notes

The Enforcement Directorate (ED) sleuths on Monday busted a money conversion racket and reportedly seized Rs.93 lakh in new currency notes in Bengaluru, Karnataka.

Seven people were arrested for their alleged involvement in the racket, News18 has reported.

ED officials posed as decoy clients during the raid to nab the money launderers. The latest arrest is likely to expose the nexus between corrupt bank officials and money conversion racket.


One of the arrested men is the relative of government engineer SC Jayachandra, whose interrogation reportedly led officers to the eight middlemen allegedly charging 15 to 35 per cent commission to convert old notes banned on November 8 by the government to choke tax evaders, NDTV reported.

As part of its drive against black money and money laundering, the ED on November 30 conducted searches in six cities across the country.

The searches were conducted in Delhi, Mumbai, Kolkata, Guwahati, Chennai and Bengaluru.

Old currency notes worth Rs 1 crore, foreign currency notes worth Rs 50 lakh and new currency notes worth Rs 20 lakh were recovered from hawala operators during the raids.

Earlier on December 1, an Income Tax raid on the premises of two engineers and two contractors in Bengaluru found a whopping Rs.5.7 crore of cash, all in the recently-introduced Rs 2000 notes. This is the biggest single cash seizure of the new currency so far.

About Rs.90 lakh was also found in old notes, which were banned after demonetisation came into effect from November 8.

Income Tax sleuths added that 7 kg gold and about 9 kg of jewellery was also found in the raid, all valued at nearly Rs.5 crore. Several property documents, too, were found and seized.

Sources in the Enforcement Directorate told NDTV that the arrested men are suspected to be part of a wider ring that operated not just in Bengaluru but in other districts too.

Earlier in the city, four bank officials were accused by the police of converting black money after Rs.5.7 crore cash was seized from a hawala operator.