Hyderabad cops bust note exchange ring, ₹3.5cr in old notes seized

HYDERABAD: The Hyderabad police busted a 13-member gang on Monday night for allegedly exchanging demonetised notes with new currency in return for hefty commission.

According to the police, banned currency worth ₹3.5 crore in ₹500 and ₹1,000 denominations was seized from the gang. Unconfirmed reports, however, said the seized currency was worth ₹8 crore.

The racket was busted at Moghul Court building in Basheerbagh, yards away from the Hyderabad police commissionerate. Following reports that several people were gathering at the office of Jain Associates in the building for exchange, central zone police raided it.

“We have arrested 10 members of the gang and the remaining three have escaped. We are investigating what they were going to do with the banned currency, whether they are part of any wider network and if they have any connection with any bankers,” Hyderabad central zone deputy commissioner of police D Joel Davis told HT.

The alleged kingpin of the racket, Fazuluddin was arrested with nine of his associates. The mediators were identified as Sai Krishna and Govindulu.

Police suspect the cash belonged to multiple individuals. The gang had offered to pay ₹43 lakh of new currency for every ₹1 crore worth of demonetised notes.

“Since only three days are left for the exchange of old currency, we are investigating how the gang was planning to do that. We, however, could not find any new currency bundles with them,” the DCP added.

The deadline for exchange of demonetised notes with new currency ends on March 31 under specific conditions. According to the Specified Bank Notes Cessation of Liabilities Ordinance, only those who were abroad, the armed forces personnel posted in remote areas or others who can give valid reasons, can deposi demonetised notes till March 31.