Demonetisation: CBI arrests two persons in connection with I-T seizure of Rs 5.63 cr
The CBI on Monday arrested two persons in connection with the Income Tax department's recent seizure of Rs 5.63 crore in new currency notes from several individuals in Bengaluru which was allegedly diverted by an ATM servicing company in criminal conspiracy with bank officials.
New Delhi: The CBI on Monday arrested two persons in connection with the Income Tax department's recent seizure of Rs 5.63 crore in new currency notes from several individuals in Bengaluru which was allegedly diverted by an ATM servicing company in criminal conspiracy with bank officials.
CBI sources said the agency arrested Nazeer Ahmed and Chandrakanth Ramalingam who were named in the FIR registered by it. Both were presented before a special court in Bengaluru and have been sent to five days CBI custody.
The sources said more arrests could be made in connection with the case.
Meanwhile, the agency said it conducted searches at 10 locations in different places across Bengaluru including the residences of bank officials, some private persons, offices of Karnataka Bank, Dhanalaxmi Bank and ATM servicing company.
CBI spokesperson Devpreet Singh said said several incriminating documents, computer hard disks, applications along with the ID proofs submitted to the bank for exchange of Specified Bank Notes (SBN) and vouchers through which money was withdrawn have been recovered.
"Scrutiny is on to compare the cash received from RBI and disbursed by the bank etc," she said.
CBI and Enforcement Directorate have registered cases in connection with the Income Tax department's seizure of over Rs 5.86 crore from four individuals, out of which Rs 5.63 crore was in new currency notes introduced post-demonetisation, agency sources said.
It is alleged Suryanarayana Bairy and Umashankar Renuka, managers of Karnataka Bank and Dhanlaxmi Bank respectively, entered into a criminal conspiracy with private individuals and an ATM servicing company Secure Value India Limited to "dishonestly and fraudulently" facilitate exchange of demonetised currency with new notes, they said.
The managers used the ATM company to divert new currency meant for 32 ATMs of the Bengaluru city to the individuals who wanted to convert their currency bills of Rs 1000 and Rs 500 which ceased to be legal tender on November 8, it alleged.
Individuals Ibrahim Shereef, Jaychandra, Nazeer Ahmed and Chandrakanth Ramalingam have also been named in the CBI FIR for allegedly using the services of bank managers to convert their old notes with new ones.