Daijiworl Media Network - Bengaluru (SP)

Bengaluru, Dec 13: Central Bureau of Investigation (CBI) officials have arrested K C Veerendra, a JD(S) leader from Challakere near Chitradurga, who owns a casino, relating to stashing away about five crore rupees in the form of newly issued currency notes in the bathroom of his residence. Unexplained cash in the form of new currency notes was found during the raid on Veerendra's residence by officials of income tax department.

In this case, CBI officials have also registered first information reports against some bank officials for supplying new currency notes in large quantities to individuals.

During the said raid, cash amounting to five crore rupees in the form of new currency notes of Rs 2,000 denomination was found stored inside a secret cupboard inside the bathroom of Veerendra's residence at Challakere. CBI officials have registered suo moto case under the provisions of money laundering act.

It has transpired that during the above raid, income tax officials had stumbled upon clue about the involvement of a Hawala operator, Samandar Singh, in the business of converting black money into white. Action has not been taken immediately as conclusive evidence could not be collected, the officials stated, indicating that Singh could face action soon.

During the investigation, CBI officers found that officials of four local banks, State Bank of India, State Bank of Mysore, Kotak Mahindra Bank and ICICI Bank had worked hand in glove with the accused, Veerendra, in providing him with new currency notes. First information reports have been filed against the officials of these four banks and criminal cases have been filed against two individuals, it is gathered.