Five people, including a BBMP sub-contractor, have been arrested by the Govindapura police for exchanging demonetised notes and possessing counterfeit money.
Cloth merchants Suresh Kumar and Ramakrishna, both aged 32, Venkatesh M, 53, Manjunath, 43, and Dayananda were caught in HBR Layout possessing Rs 35 lakh in Rs 500 and Rs 1,000 demonetised notes.
While Kumar is from KR Puram and Ramakrishna from Rajajinagar, Venkatesh — a BBMP sub-contractor — and Dayananda, a farmer, are from Hongasandra. Manjunath is from Anekal and is also a farmer.
The suspects attempted to exchange the demonetised currency for 35% of their face value. Besides seizing Rs 80 lakh in demonetised notes, police have also recovered coloured photocopies of the notes worth Rs 5 crore.
On October 10, Venkatesh, Manjunath and Dayananda arrived in HBR Layout to exchange the demonetised notes. On receiving information, police rushed to the spot and detained them and seized notes worth Rs 45 lakh.
Main accused Kumar and Ramakrishna assured them that they would help them sell the demonetised currency at 35% of their value. Believing them, the trio arranged more demonetised currency paying 20% of their face value.
A team headed by inspector C Prakash nabbed Kumar and Ramakrishna and seized Rs 35 lakh demonetised currency. The duo informed police about a gang in Kerala that buys demonetised notes and hoards large amounts of notes in a farmhouse in Kerala. Police went to the farmhouse and seized 25 sacks of demonetised notes that are coloured photocopies.