The north zone police seized ₹1.2 crore in demonetised ₹1,000 and ₹500 currency notes and arrested 16 people who were collecting it on the promise of getting it exchanged with legal tender for half the value. The development came just two days after the Banjara Hills police had seized the same amount and took 15 people into custody for trying to do the same.
According to B. Sumathi, Deputy Commissioner of Police (DCP), north zone, the main accused of the exchange scam were Sriram, who was absconding, Anthati Yadagiri, M. Reddy Pawan Kumar Reddy, Sathyavati and Sheikh Subhan, who was in possession of ₹90 lakh in demonetised currency. They were all arrested late on Monday night from Godavari apartments, near Shyamlal Nala, under the Begumpet police station limits.
Ms. Sumathi said all the accused were brought together in three groups, gathered by Subhan, who is a native of Nellore district in Andhra Pradesh, Sriram, and another accused named Venkanna, a photographer hailing from Siddipet district. “They were asked to collect cash by other mediators, who told the accused that they would exchange the old notes with new ones for half the price,” she added.
The DCP said the racket was busted when Madhu Uyyala, a sub-inspector with the Begumpet police, was patrolling the Shyamlal area at night and noticed that some of the accused had gathered near the Pochamma temple. After they fled from the spot, the police tracked them at Yadagiri’s flat in Godavari apartments and arrested the 16 accused.
“It is a cheating case. Who these mediators are we are yet to find out,” said Ms. Sumathi. She added that Subhan, who had ₹90 lakh with him, had told the police that he got the money after selling his house a few months ago. “He got a higher price as he took cash in demonetised currency notes,” she added. Another police official said that the remaining ₹30 lakh was with Pawan, who reportedly got the money after disposing of his business.
All the accused were reportedly told my mediators that the demonetised cash would be sent to the Reserve Bank of India’s (RBI) branches in Chennai, Bombay and other cities where the old notes could still be deposited till March 31, said officials.
