demonetisation raids karnataka corruption fraud notes banks bureaucrats raids income tax acb police bengaluru exchange commission nexus contractors
People queue up outside an ATM in Bengaluru. (Representational Picture)IANS

Prime Minister Narendra Modi's decision to demonetise high-value currencies may not have yielded the desired results yet, as perceived by analysts, but it is certainly exposing many corrupt bureaucrats in Karnataka who are keen to convert their black money into white.

The most sensational case was that of income tax raids on premises last week that resulted in seizure of about Rs 5 crore in Rs 2,000 notes, the new denomination introduced on November 10, 2016. 

M A Saleem, inspector general of police at Anti-Corruption Bureau (ACB), Karnataka, has been tweeting about raids and searches on various government officials in the state over the past few days, the latest being on Tuesday.

"Today ACB has conducted raids in the houses and office of 5 Government officials in Bangalore, Mysore, Kolar and Ramanagram.Raids are on," Saleem tweeted.

The income tax department seized Rs 4.7 crore in Rs 2,000 notes after raids conducted on November 30 on TN Chikkarayappa, managing director of state PSU Cauvery Neeravari Nigam Limited and S C Jayachandra, chief projects officer of the State Highway Development Project.

The union finance ministry's Enforcement Directorate (ED) arrested the two accused on charges of money laundering and will be questioned till December 9.

ACB today booked criminal cases under prevention of corruption act against two Engineers who were earlier raided by IT dept.

— M A Saleem IPS (@masaleemips) December 5, 2016

The next step was the arrest of a contractor, Chandrakanth Ramalingam of Ramalingam Constructions, and Naseer Ahmed, a middleman.

Two bankers — Suryanarayana Bairy, chief manager, Karnataka Bank of Indiranagar branch and Umashankar, Dhanalaxmi Bank, JC Road branch manager — are also being questioned for their role in the racket, reported the Bangalore Mirror.

Besides, Ravi Goel, the managing director of logistics firm SecureValue India, has also been named as an accused, the daily added.

The next step was the arrest of a contractor, Chandrakanth Ramalingam of Ramalingam Constructions, and Naseer Ahmed, a middleman.

Two bankers — Suryanarayana Bairy, chief manager, Karnataka Bank of Indiranagar branch and Umashankar, Dhanalaxmi Bank, JC Road branch manager — are also being questioned for their role in the racket, reported the Bangalore Mirror.

Besides, Ravi Goel, the managing director of logistics firm SecureValue India, has also been named as an accused, the daily added.

In another case, the ACB last week swung into action against two officials of the Mysore City Corporation.

 Axis Bank managers arrested

Two managers of private sector lender Axis Bank were arrested on Monday by the ED on charges of indulging in attempts to convert demonetised notes into gold.Shashank Sinha and Vinit Gupta, posted at the bank's Kashmere Gate branch in Delhi, were facilitating cash deposits of about Rs 40 crore in multiple bank accounts that was eventually used to buy gold at high prices using a network that comprised jewellers and a chartered accountant.

"The group of jewellers had collected advances in old currency against the sale of gold and laundered the cash using bank accounts, through entry operators, chartered accountants Rajeev Kushwaha, Devendra Jha and Raj Kumar Sharma," the Hindu quoted a senior ED official as saying.

"Several shell companies, including Sunrise trading firm, Himalaya International and R.D. Traders – which have their bank accounts with the Kashmere Gate branch were used to deposit cash between November 10, and 22, in connivance with the bank mangers," the official added.

The racket was busted when income tax officials seized Rs 3.7 crore in old notes from three persons outside the Kashmere Gate branch, leading to further raids and disclosures by the accused. 

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