Bengaluru, Dec 10 (DHNS): The Karnataka High Court on Friday directed the Central Bureau of Investigation (CBI) not to arrest Ibrahim Shereef, one of the accused in a case related to new currency seizure involving senior state government official S C Jayachandra.

The high court directed the CBI not to arrest Shereef after he gave an undertaking that he would co-operate with the investigation.

Shereef, a civil contractor moved the court requesting to quash the FIR registered against him. The CBI had registered FIR for possession of new Rs 2,000 and Rs 500 notes by seven persons. The Income Tax Department had recovered Rs 4.80 crore cash in Rs 2,000 from Shereef, a native of Thirthahalli in Shivamogga district.

In his petition, Shereef, contended that CBI had no jurisdiction over a private individual and the two private banks booked in the case. C H Jadhav, senior counsel appearing for Shereef said that the petitioner still has time till March 31, 2017 to furnish details on the cash found at the apartment, under section 69-A of the Income Tax Act. The cash at the apartment was meant for the wedding of Shereef's daughter scheduled to be held in January 2017, the counsel said.

Justice Anand Byrareddy asked the CBI as to how it could book a private individual for keeping cash at home. The counsel appearing for the CBI, Prasanna Kumar argued that Shereef was booked on the charges of abetment and conspiracy of exchanging old currency in violation of the guidelines issued by the Reserve Bank of India.

The CBI counsel stated that any interim relief to the accused would derail the probe. He also said that both the private banks come under the Banking Regulation Act and hence the CBI has jurisdiction. Justice Byrareddy passed the interim order asking the CBI not to arrest Shereef since the latter gave an undertaking to co-operate with the probe.