KOCHI: The Air Intelligence Unit of the Customs Department on Thursday arrested a Kannur-native while attempting to smuggle in defunct currency notes of 500 and 1,000 denomination, worth Rs 10 lakh, through the Nedumbassery airport, in what could be termed as an ‘impact’ of the demonetisation drive.
Abdul Salam, 50, a native of Panoor in Kannur, was taken into custody when he arrived at the airport at 9 am from Dubai.
Customs Commissioner K N Raghavan said it was the first time in the country that Indian currency smuggled from abroad seized, after the government withdrew the 500 and 1 ,000 denominations. According to him, it is unaccounted cash that was parked abroad. It is suspected that Abdul Salam is just a carrier who smuggled the consignment for a commission of Rs 20,000. The currency notes were concealed in packets of toilet napkin, tissue paper and soap powder.
“There were 1,000 denomination currencies worth Rs 7 lakh, and 500 denomination currencies worth Rs 3 lakh. The arrested person was intercepted by air intelligence officers, and the currencies were recovered during baggage checking,” he said.
The passport of Abdul Salam, who had left for Dubai from the Kozhikode airport on November 20, revealed that he visited the Middle East country frequently. Customs officials suspect that he had been engaged in smuggling activities for a long time. It is also suspected that ‘hawala’ operators are behind the currency smuggling.
“The arrested person confessed that he was asked to hand over the contraband to another person outside the airport,” said Raghavan.
Customs official said that foreign exchange agencies in the Gulf were still accepting the cancelled currency notes at reduced exchange rates, despite being asked not to do so.
“Such notes are later sent to India to be exchanged with new currencies. We are interrogating the accused to gather information about the other persons involved in the illegal activity,” said a Customs official.
During interrogation, Abdul Salam said his wife was a panchayat councillor. The Customs Department passed on the information to the RBI, Income Tax Department and Enforcement Directorate. A case has been registered against the arrested - for carrying currency notes above the permissible limit.