The modus operandi behind the currency exchange scam in Karnataka
A case of money laundering was registered by the Enforcement Directorate after Rs 93 lakh in new currency was seized.
Bengaluru, Dec 9: It was a three step modus operandi followed by the seven persons including officials from Karnataka which was followed while fraudulently exchanging demonetised currency into the newly introduced notes. A case of money laundering was registered by the Enforcement Directorate after Rs 93 lakh in new currency was seized.
A case was registered against S C Jayachandra, a chief project officer of the State Highways Development Project, Karnataka and others after it was found that they were allegedly involved in a currency exchange racket. The accused according to officials of the Enforcement Directorate had organised a systematic network for supplying new currency notes in exchange for demonetised currency.
The modus operandi:
Ongoing investigations being conducted by the ED suggests that the accused persons who had hoarded large sums off demonetised notes were looking to exchange currency by paying a commission of 20 to 35 per cent. The accused persons had sourced new currency notes from across Karnataka since November 9, a day after the decision on demonetisation was made.
The accused persons had identified several persons to withdraw money. The RBI had fished the withdrawal limit at Rs 24,000 per week. These persons would then be contacted by the middlemen who would get the old currency exchanged for the new notes. The persons withdrawing the money would get a commission of 25 per cent. The old notes would then be deposited in the banks.
It
was
also
found
that
these
persons
had
also
been
in
touch
with
collection
agents
of
several
micro
finance
institutions.
The
agents
would
collect
fresh
currency
notes
from
self
help
groups.
The
old
notes
would
be
desposited
into
the
accounts
of
these
self
help
groups
as
they
enjoyed
exemption
from
the
RBI.
The
ED
says
that
current
accounts
too
had
been
misused.
The
current
account
holders
identified
by
the
accused
persons
would
withdraw
Rs
50,000
each
week
(the
maximum
limit
set
by
the
RBI
then).
The
accused
persons
would
then
exchange
the
old
notes
with
the
new
ones.
The
current
account
holder
would
then
go
back
to
the
bank
and
deposit
the
old
notes,
the
ED
also
says.
OneIndia News