HC tells CBI to file report on probe into note exchange racket

The High Court on Thursday asked the CBI to file its progress report on the investigation into currency exchange racket pertaining to K C Veerendra, a casino owner and a hawala trader.

During Income Tax raids in December 2016, Rs 5.76 crore in new currency notes was found in Veerendra’s residence in Challakere in Chitradurga district. He has approached the High Court for bail contending that he had men to stand in the queue in the bank for exchange of currency. He has contended that he is answerable to the I-T department and CBI has nothing to do with the currency found in his house.

CBI, in its statement of objection, has said that it is not practical to exchange old currency of Rs 500 and Rs 1,000 for a total value of Rs 5.76 in a small town of Challakere without the connivance of bank officials. The CBI has said that interrogation of the petitioner is very much necessary to unearth the deep-rooted conspiracy and if bail is granted, there are chances of evidence being destroyed by him.

Justice Rathnakala directed CBI to ahead with the investigation and to submit their progress report in the next hearing on January 24.

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