Central Crime Branch (CCB) sleuths arrested two men and seized Rs 1.28 crore in demonetised notes of Rs 500 and Rs 1,000.
The two were trying to get these demonetised notes converted into valid denominations with the help of Non-Residents Indians (NRIs). The arrested - Jemmy Rahul (34), an accountant, and his friend Ajay (26), a realtor - had their office at a flat in Julta Surya Elite Apartments on Upper Pipeline Road in Sheshadripuram. Rahul also resided there, the sleuths said.
Rahul invested money in real estate and the two made Rs 5 crore in a few years. They used to stash the money in their houses, instead of depositing them into their bank accounts, the sleuths said. After the demonetisation, the duo managed to get nearly Rs 4 crore converted into valid denominations, but the rest Rs 1.28 crore remained when the deadline was over. Rahul, who knew that the government has extended the deadline for NRIs to exchange old notes till March 31, planned to get the remaining money also converted. Ajay suggested they could look for NRIs who would do the job for a commission.
B Raju, CCB inspector, met Rahul and Ajay in the guise of a pawnbroker and told them he could arrange for the exchange at a commission of 58%. The duo accepted the deal. The inspector asked them to show the money. Initially, Rahul showed him Rs 50 lakh that was hid in the boot of a car and said the remaining Rs 78 lakh was stashed in his apartment. The officer called up his team and they raided the apartment. The two were arrested under the Specified Bank Notes (Cessation of Liabilities) Act. According to the Act, it is an offence to have old denomination notes of Rs 500 and Rs 1,000.