?93 L in new notes seized from B'luru note conversion racket
The Enforcement Directorate (ED) has busted a Bengaluru racket involved in the illegal conversion of demonetised notes and seized ?93 lakh in new notes. The ED officials posed as customers looking to get old currency changed illegally and arrested seven alleged middlemen. The middlemen were reportedly charging 15-35% commission to convert money in alleged connivance with bank officials.
Bengaluru, Dec 13 (PTI) Unearthing a racket involved in illegal conversion of demonetised notes, the ED has arrested seven alleged middlemen and seized Rs 93 lakh in new currency in Karnataka as part of its money laundering probe. Officials said the agency placed the seven, including the relative of a government official, under arrest late yesterday under provisions of the Prevention of Money Laundering Act (PMLA).  Rs 93 lakh in new notes of Rs 2000 have been seized in the case, they added. Officials said the 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. 