Rs 16 lakh in new currency was found in the possession of the RBI officer, K Michael and eight others.

Bengaluru RBI official held in Rs 151 crore currency exchange scamPTI
news Crime Tuesday, December 13, 2016 - 16:38

The Central Bureau of Investigation (CBI) sleuths arrested an RBI official from Bengaluru on Tuesday in a currency exchange scam worth Rs 1.51 crore, as per media reports.

Apart from the RBI employee, eight others were arrested by the CBI and Rs 16 lakh in new currency denominations of Rs 2,000 was found in their possession, the reports said.

According to CNN News 18, the RBI officer, K Michael, was involved in exchanging the demonetised Rs 500 and Rs 1,000 notes to new denomination notes through the State Bank of Mysore.

The scam was brought to light after CBI had some of its officials pose as individuals who wanted to convert demonetised currency to the new ones by offering to pay off a few middlemen, TOI reported.

The middlemen allegedly charged 15% to 30% commission for the currency exchange, TOI reported.

On December 10, CBI sleuths had arrested businessman and politician, KC Veerendra in connection with the seizure of Rs 5.7 from his residence in Kalburgi.

Media reports suggested that a case was registered against State Bank of India, State Bank of Mysore, ICICI Bank and Kotak Mahindra Bank in connection with Veerendra’s arrest.

Veerendra was produced before a special court in Bengaluru and was remanded to six days police custody, CNN News 18 reported.

Also, the Chief Project Officer of the Karnataka State Highways Development Authority, KC Jayachanra, was questioned by the Enforcement Directorate and media reports suggested that he named two ministers in CM Siddaramaiah’s cabinet in connection with a Rs 5.7 crore scam that he was allegedly involved in.