Bengaluru: Enforcement Directorate registers case against Jayachandra; kin held
BENGALURU: Based on a case registered by CBI in connection with fraudulent exchanging of demonetised currencies with newly introduced currencies, the directorate of Enforcement Directorate, Bangalore Zone has registered a case on Money Laundering under the Prevention of Money Laundering Act, 2002 against S.C. Jayachandra who was servicing as the Chief Project Officer of State Highway Development Project, and was one of the accused named in the crime branch FIR.
He was arrested on December 5 and based on his revelation during the course of investigation, seven persons including G. Prashanth, brother-in-law of Jayachandra, who were supplying new currencies in exchange of demonetised currencies to Jayachandra have been arrested and a total amount of Rs 91,94,000 (4,597 pieces in Rs 2,000 denomination) have been seized.
The accused had organised a systematic network for supplying new currency notes in exchange of old currency to various people, who had hoarded demonetised currencies and were desperately looking for exchanging it by paying a commission, ranging from 20% to 35% since November 8, when the government announced demonetization of high value currencies.
The accused had supplied new currencies on many earlier occasions to Jayachandra through G. Prashanth and they fell into Enforcement Directorate's trap on Dec. 4.
Modus operandi
Several household, who were having accounts in the banks used to withdraw Rs 24,000 new currency notes (maximum limit allowed as per RBI circulars per week), and they used to get exchanged through various middlemen or agents. After conversion they used to get 25% commission. They used to deposit old currency in banks again.
Collection agents of several micro finance institutions collect fresh currency notes from the self help groups, but deposited only old notes since they enjoy RBI exemption.
Current account was also misused and several people having current account used to withdraw Rs 50,000 from each account per week (maximum limit granted by RBI). After getting new currency they used to get it converted from old currency on commission and used to deposit the old currency again.
