BENGALURU: The Central Bureau of Investigation (CBI) arrested two persons and conducted searches at 10 locations in different parts of the city, on Monday. The arrests were made in connection with the alleged criminal conspiracy of diverting new currency denominations illegally. The FIR filed suspects the involvement of other officials from public and private sector banks.
The arrested, according to sources are Nazir Ahmed, resident of Jayanagar and Chandrakant Ramalingam, a contractor, who had served as middlemen in the illegal diversion. Another accused, Ibrahim Shariff, from whose residence Rs 4.8 crore in new denominations was allegedly seized is absconding since CBI registered a FIR on Saturday, December 3. The agency is on a lookout for the accused.
From banks, via logistics firm
Two bank officials - Sooryanarayana Bairy, chief manager of Karnataka Bank, Indiranagar branch, Umashankar Renuka, manager of Dhanalaxmi Bank, JC Road brach along with Ravi Goel, managing director of SecureValue India Ltd, a logistics firm who were involved in transferring currency notes to ATMs in the city have also been named in the FIR. CBI has been questioning the three officials regarding their role in the scam.
According to the FIR, Bairy allegedly falsified documents to misrepresent that the new notes were exchanged with customers, whereas he had fraudulently diverted new Rs 2000 denomination to agents.
Meanwhile, Umashankar allegedly gave Rs 1.3 crore to SecureVallue to refill ATMs in the city between November 8 and November 29, which was all diverted to the other accused. SecurValue is also accused of diverting money from other banks.
According to a CBI release, the accused, private company and "unknown officials of other public sector and private sector banks in a criminal conspiracy had fraudulently diverted the new currency meant for deposit/replenishing the ATMs of different banks and exchanged them against old demonetised currency notes through various middlemen/agents."
The logistics firm, SecureValue dealt with funds of 18 banks, both from the public and private sector.
Documents seized
CBI conducted searches and seized 'incriminating documents' against the accused. Searches were conducted in 10 locations including residences of bank officials of Karnataka and Dhanalaxmi Bank, officials of SecureValue and other private parties suspected to be involved in the case. Computer hard disks, ID proof submitted to exchange specified bank notes and vouchers through which money was withdrawn were also recovered, said the release.
The agency is scrutinising how the banks disbursed such large amount of cash after receiving it from RBI, to the accused.
CNNL MD not named
In the FIR, TN Chikkarayappa, former managing director of Cauvery Neeravari Nigam Limited, has not been named, while S C Jayachandra, chief project officer, State Highway Development Project, PWD Department, is one of the accused.
According to officials, CBI was investigating a case of bank fraud and Chikkarayappa was not named as no cash in new denomination notes was recovered from his house. However, Income Tax officials had seized Rs 5 lakh in new denomination notes at Jayachandra's residence.