<p>Busting a currency exchange racket, police have seized Rs 39.98 lakh in Rs 2,000 denomination notes at Tirur area in the district and arrested a man, already facing a hawala case, in this connection.<br /><br /></p>.<p>While Rs three lakh was seized from 63-year-old Shoukath Ali at the bus stand in Tirur, Rs 36.98 lakh in Rs 2,000 notes was recovered from the residence of a businessman, police said, noting the seizure and arrest were made yesterday.<br /><br />Ali, hailing from Palakkad district, was produced before a magistrate's court and remanded in judicial custody today, police said.<br /><br />A search was on for businessman Shabir Babu, who had allegedly given the Rs three lakh to Ali to exchange scrapped Rs 500 and Rs 1,000 notes.<br /><br />Babu had also allegedly distributed new currency notes to nine other persons in exchange for scrapped notes, they said.<br /><br />Ali had been arrested six months ago on charges of hawala transactions and is out on bail, police added. <br /></p>
<p>Busting a currency exchange racket, police have seized Rs 39.98 lakh in Rs 2,000 denomination notes at Tirur area in the district and arrested a man, already facing a hawala case, in this connection.<br /><br /></p>.<p>While Rs three lakh was seized from 63-year-old Shoukath Ali at the bus stand in Tirur, Rs 36.98 lakh in Rs 2,000 notes was recovered from the residence of a businessman, police said, noting the seizure and arrest were made yesterday.<br /><br />Ali, hailing from Palakkad district, was produced before a magistrate's court and remanded in judicial custody today, police said.<br /><br />A search was on for businessman Shabir Babu, who had allegedly given the Rs three lakh to Ali to exchange scrapped Rs 500 and Rs 1,000 notes.<br /><br />Babu had also allegedly distributed new currency notes to nine other persons in exchange for scrapped notes, they said.<br /><br />Ali had been arrested six months ago on charges of hawala transactions and is out on bail, police added. <br /></p>