HC reserves order in cash exchange case

The high court on Wednesday reserved its orders with regard to a petition filed by K C Veerendra, one of the accused in the currency exchange racket.

Veerendra, a casino owner and hawala-trader was arrested after an I-T raid in December 2016. During the raid by the Central agencies on his residence in Challakere in Chitradurga district, they found Rs 5.76 crore in new currency notes hidden in a secret locker. He was booked by the CBI too and is out on conditional bail now.

Veerendra had contended that he had got people to stand in the queue in the bank for exchange of currency and the amount that is recovered from his house belongs to him. He has said that he is answerable to the I-T department and the CBI has nothing to do with the currency found in his house.

The CBI has said that it was not practical for him to have exchanged old currency of Rs 500 and Rs 1,000 for a total value of Rs 5.76 crore in a small town like Challakere without the connivance of officials of various banks. Justice K N Phaneendra reserved the orders in the matter.