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Karnataka: Enforcement Directorate arrests 7 middlemen with Rs 93 lakh in Rs 2,000 notes

News Agencies | Updated on: Fri, 10 Feb 2017 01:38:00 IST

The Enforcement Directorate (ED) on 13 December arrested seven alleged middlemen and seized Rs 93 lakh in new currency in Karnataka, unearthing a racket of illegal conversion of demonetised notes.

Officials said the agency placed the seven - including the relative of a government official - under arrest late on Monday under provisions of the Prevention of Money Laundering Act (PMLA).

Rs 93 lakh in new notes of Rs 2,000 have been seized in the case, they added.

Officials said action was taken as part of a probe in a case where the Income Tax department had recently seized Rs 5.7 crore cash in new currency and the Enforcement Directorate had booked a money laundering case against a government engineer and others based on a CBI FIR in the case.

The modus operandi adopted by the alleged middlemen, officials said, was unearthed after ED officials launched a special operation and themselves posed as 'customers' looking to get old currency changed illegally, after paying commission to the said middlemen.

Officials said the probe by the agency found that these alleged middlemen were reportedly charging a commission between 15-35% and were executing the racket of illegal conversion of new notes in alleged connivance with bank officials.

They said the agency suspects that there is a chain of middlemen involved in converting black funds into white even as they added that the probe is in process.

The accused are expected to be produced in a local court in Bengaluru for further custody.

--PTI

First published: 13 December 2016, 10:58 IST
 
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