Three persons, including an orthopedic surgeon were taken into custody on Sunday by the Visakhapatnam police, while allegedy trying to exchange new currency notes worth Rs 47 lakh for a commission.
The accused were identified as Dr Anne Sireesh, and his two associates, M Surya Prasad Reddy and B Srinivasa Rao.
A team led by Assistant Commissioner of Police (Task Force), Chittibabu, raided an apartment on Shankar Mutt road and arrested all three accused.
The surgeon was trying to exchange the new notes for demonetised notes by charging a 30% commission, the ACP told Deccan Chronicle.
The police has seized Rs 46 lakh in Rs 2,000 denomination and Rs 1 lakh in Rs 100 denomination from the trio.
During the investigation, the doctor revealed that he had exchanged Rs 40 lakh earlier.
The police are yet to ascertain how the accused got his hands on the new notes.
Recently in December, the City Task Force (CTF) police had arrested six people, who were allegedly exchanging huge sums of money illegally, and seized Rs 12.5 lakh in Rs 2,000 notes and another Rs 6 lakh in the old Rs 1,000 notes.
"The brokers had been charging 25% commission for the illegal exchange and the accused had been procuring such large amounts of new currency notes when banks in the city were facing a severe cash crunch,” ACP Chittibabu earlier told The New Indian Express.