UP constable among 3 held with ₹1.5 cr demonetised notes

Moradabad police said they were probing the role of bank officials who helped racketeers in the exchange of illegal tenders

The arrest of a police constable and two others, who were found to be in possession of ₹1.5 crore in demonetised notes in Moradabad’s Dilari, has created a flutter since police claimed that some bank officials were also involved in the racket.

One of the three men arrested after they were found to be in possession of demonetised notes. (Sourced)

While the district police said they had exposed the well-organised racket that involved illegal exchange of scrapped notes, they noted that how these notes found their way into the banking system needed a thorough investigation.

The seized currency included 14,636 ₹500 notes and 7,681 ₹1,000 notes, which have been out of circulation since the government’s demonetisation move on November 8, 2016.

As per the existing norms, banks are not allowed to accept phased-out currency notes.

Meanwhile, police slapped sections 318(4)/62/61(2)(a) of the Bharatiya Nyaya Sanhita (BNS) and Sections 5/7 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017 against the accused. The BNS sections deal with cheating, attempts to commit offences, and criminal conspiracy.

The three men were caught from near Dilari’s Haunspura bridge around 3 am on Monday during a routine police vehicle check. The officials stopped a suspicious car and discovered two large sacks filled with scrapped ₹500 and ₹1000 currency notes. The total recovery amounted to ₹1,49,99,000. Three others who were also in the car managed to escape, however.

The development was corroborated by Moradabad superintendent of police (SP)-Crime Subhash Chandra Gangwar.

Vicky Gautam, the constable who was arrested, hails from Jalilpur Bakkal in Amroha and is currently posted in Sitapur but has reportedly been absent from duty since December last year. “The Sitapur police have been asked to provide a detailed report [on Gautam], and based on the findings, his suspension will be recommended,” Moradabad senior superintendent of police (SSP) Satpal Antil said.

The other two men who were arrested are Mohammad Yasin Ali from Ahmadnagar in Rampur and Mohammad Riaz Ahmad also from Rampur. Riaz is reportedly battling a physical disability.

The men who got away were identified as one Faisal from Saidangali in Sambhal, Sattar from Guhawar in Bijnor’s Noorpur area and Yusuf also from Noorpur. All six have been booked under the mentioned sections.

SP Gangwar, who is overseeing the investigation, said each gang member had a defined role in the operation. Faisal allegedly collected old notes and delivered them to Riaz and Yasin in Rampur. From there, the currency notes would be passed on to Sattar, who lived at a poultry farm located between Guhawar and Noorpur.

According to the police, Sattar and Yusuf acted as brokers, providing 10 per cent of the value in new currency in exchange for the demonetised notes. In this case, they were to provide ₹15 lakh for the ₹1.5 crore in old currency notes. The accused were allegedly en route to Noorpur for the exchange when they were intercepted.

Bankers’ role

The accused reportedly told interrogators that they had connections with banking officials, who allegedly provided them with fresh currency notes in exchange for old notes in return for commissions. “We will question bank officials concerned and verify these claims,” said Gangwar. “This gang has been active for quite some time, but this is the first time its members have been caught in a police operation.”

On how these old notes were absorbed into the banking system, the SSP said the matter required a thorough investigation.

Another police official privy to the investigation said the accused had already kept ₹10 lakh as their commission for the exchange of the exchange of illegal tenders worth ₹1.5 crore.