VISAKHAPATNAM : The City Task Force (CTF) police on Tuesday busted a racket involved in exchanging demonetised currency notes and seized Rs 12.5 lakh worth Rs 2,000 notes and another Rs 6 lakh in the de-legalised denominations.
Six persons were arrested during a raid conducted by the Task Force on NR Travels office in MVP Colony, after receiving credible information.
According to the police, the accused have been identified as G Prasad, N Srinu and N Krishna and brokers K Kumar, D Madhusudhana Rao and NP Kumar, all involved in various business. The gang had been exchanging Rs 1,000 and Rs 500 currency notes on high commission rate up to 25 per cent.
CTF officials said K Kumar, NP Kumar and Madhusudhan Rao are brokers, who used to arrange the new currency notes for their clients.
The police have recovered Rs 12.5 lakh in the Rs 2,000 notes from Prasad, Rs 4 lakh in the old Rs 1,000 denominations from Srinu and Rs 2 lakh in the old Rs 1,000 denominations from Krishna.
Task Force assistant commissioner of police (ACP) I Chittibabu said that the brokers had been charging 25 per cent commission for the illegal exchange and it was yet to be known as to how the accused had been procuring the new currency notes in such a huge amount when the banks in the city were facing severe cash crunch.
Police sources said that more money was yet to be recovered from the gang. Further investigation is on.