Kodagu police seize over 34 lakh in new currency notes from taluk panchayat member

MADIKERI: Kodagu police on Saturday seized cash worth Rs 35.46 lakh, of which over Rs 34 lakh were in notes of Rs 2,000 denomination, from a taluk panchayat member following a raid on a resort room in Sunticoppa. The incident comes close on the heels of income tax (I-T) raids on two senior state government officials in Bengaluru, where officials seized assets worth Rs 152 crore, including Rs 5.7 crore in new currency notes.
A member of the Shanivarsanthe taluk panchayat, BS Ananthkumar has been detained by police, along with two others: Jameel Ahmed and Sridhar, residents of Kushalnagar.Police have informed the I-T department of the seizure of cash in new currency notes.
Acting on a tip-off, cops raided the Coorg County Resorts during the early hours of Saturday, and took the trio into their custody. Although Ananthkumar told them that he was a businessman, and had received the money from contractors, cops were not satisfied with his explanation.
Police said that he would be questioned further by I-T officials.
Kodagu SP Rajendra Prasad told TOI that primary investigation had revealed that both Jameel and Sridhar were at the resort to discuss the possibility of exchanging the demonetised Rs 500 and Rs 1,000 notes for legal tender. "The exchange also involved a commission. They were sent here by someone else, whose identity we are yet to ascertain. It's difficult for us to trace the origin of the new Rs 2,000 notes we have seized. So, we have called in officials from the I-T department," he added.
Bankers in Mysuru too under I-T scanner
After the income tax (I-T) department seized over Rs 5 crore in new currency notes during raids on two senior state government officials - TN Chikkarayappa and SC Jayachandra - in Bengaluru over the past two days, the department has learnt that a few banks in Mysuru helped the two bureaucrats exchange old notes.
In the early hours of Saturday, three bank managers - two attached to PSU banks, and one private bank employee - found I-T officials at their doorstep.
Sources said that these bank officials were involved in getting old Rs 500 and Rs 1,000 notes exchanged for new tender, following Centre's demonetisation move.