K. Micheal, a senior special assistant of the Reserve Bank of India was arrested in Bengaluru for the alleged conversion if banned notes of Rs 500 and Rs 1000. According to reports, 8 others have also been arrested in a series of the raids by the Income Tax department, where new notes amounting to crores have been seized. Micheal was arrested by the Central Bureau of Investigation for allegedly converting black or untaxed money. According to NDTV, more than Rs 1.50 crores was involved in the case.
It was reported that the investigators had pretended to be customers to nab the 8 middlemen who were allegedly involved in the laundering of unaccounted or untaxed money for a certain price. Reports suggest that an amount of approximately Rs 93 lakhs was found on them in the raid that was conducted during the weekend. One of the arrested men was reported to tp be relative of SC Jayachandra, a government engineer. Jayachandra’s interrogation is what led the CBI officers to catch the 8 men who were charging 15-35% commission to for the conversion of old notes that had been banned from November 8 by the Central government.
NDTV reports that the Enforcement Directorate believes that these arrested men might be the part of a larger ring that operated not just in Bengaluru but other districts as well. the Income Tax department today seized Rs 5.7 crore cash in new notes, 32 kgs of gold biscuits and jewellery and Rs 90 lakh worth old notes stashed inside the bathroom tiles of a hawala dealer in the far-flung town of Challakere in Karnataka. The cash stash of Rs 5.7 crore, all in new Rs 2,000 notes, 28 kg of bullion (gold biscuits), 4 kg of other gold and jewellery was stuffed inside this bathroom safe, which was kept sanitised against termites using hundreds of mothballs.