Central Bureau of Investigation (CBI) has arrested two private persons — Chandrakanth Ramalingam, a contractor and Naseer Ahmed, a resident of Jayanagar — for acting as middlemen in the illegal exchange of old currency, that was recovered during the recent IT raids in the city.
CBI is on the lookout for another contractor Ibrahim Shereef, a civil works contractor, from whose flat in Pebble Bay apartments, RMV II Stage, the largest cash haul of Rs. 4.80 crore all in Rs. 2000 denomination was recovered during the recent IT raids. CBI sources said that Ibrahim Shereef, the biggest player in the now busted currency exchange racket, had been absconding ever since CBI registered the FIR.
While S.C. Jayachandra, chief project officer, State Highway Development Project, has been named an accused in the FIR, since IT sleuths recovered Rs. 5 lakh in new currency from his house, another bureaucrat T.N. Chikkarayappa, has not been named in the CBI FIR, since IT sleuths recovered no new currency from his house. Mr. Jayachandra was yet to be questioned by CBI in the case, sources said.
CBI is still grilling two bank officials — Suryanarayana Bairy, chief manager, Karnataka Bank, Indiranagar branch, Umashankar, Branch Manager, Dhanalaxmi Bank, JC Road branch and Ravi Goel, Managing Director, M/s. SecureValue India Ltd., a logistics firm with contracts to refill ATM kiosks in the city.
CBI FIR clearly narrates the role of the three in providing new currency of Rs. 2000 denomination in black to the bureaucrats and the contractors.
A banking fraud
The FIR narrates two kinds of banking frauds involved — diversion of new currency using falsified identity documents to misrepresent exchange at banks before November 24 and diversion of money meant for ATM kiosks leaving them dry.
The FIR based on source information reveals that Suryanarayana Bairy, Chief Manager, Karnataka Bank, Indiranagar branch, connived with the contractors and other accused and fraudulently diverted new currency notes, all in Rs. 2000 denomination, to other accused through unknown middlemen/agents.
The FIR further said that the initial facility provided for exchange of demonetised old currency to new at banks was misused by Mr. Bairy to divert new currency in the black. Mr. Bairy is alleged to have “falsified the accounts of his bank on the basis of forged and fabricated documents of identity and address proof in the names of several individuals to misrepresent that the new currency notes were exchanged with the general public at the bank counters.” The exchange of currency notes at the bank counters was withdrawn on November 24. The FIR doesn’t mention as to what volume of currency did Mr. Bairy divert into the black market and he dealt with whom.
Monies for ATM diverted
In another modus operandi, defrauding the bank customers, the CBI FIR alleges that Umashankar Renuka, branch manager, Dhanalaxmi Bank, JC Road branch and representatives of M/s. Secure Value India Ltd., a logistics firm contracted to move and refill cash to ATM machines, diverted the money to private individuals.
Umashankar Renuka gave a total of Rs. 1.30 crore to Secure Value India Ltd, to refill 32 ATMs between November 8 and November 29, which was diverted and paid to Ibrahim Shereef, S.C. Jayachandra, Nazeer Ahmed, Chandrakanth Ramalingam and unknown others.
As per the FIR Secure Value India Ltd. is said to have diverted currency from other banks with which they had money transport contracts into the black market, for a hefty commission.
All the seven accused have now been booked for criminal conspiracy, cheating, misappropriation, forgery, falsification of accounts and criminal misconduct by public servants.
