Daijiworld Media Network - Bagalkote (SP)

Bagalkote, Oct 29: A huge racket which was reportedly promising to exchange demonetised currency notes of the denominations of Rs 500 and 1,000 for a commission, and which promised to double the money within seven days and then cheated the general public, was unearthed by the police here. 12-member inter-state gang of cheaters was arrested.

In a shocking revelation, the police have found that a person working in the office of the district superintendent of police (SP) was the kingpin of this entire racket. Reportedly, this is a racket said to be of the magnitude of Rs 667 crore.
The names of the arrested persons have been given as Shankar Gama, Manoj Kumar, Sharath Baburao Patil, Mahendra Navasi, Mohammed Aqlaq, Indrish Kazi, Sangappa Koti, Abbas Farooq, Vijay Pande, Murari More, Ashfaq, and Papat Kakadia.

All of them used to contact rich persons and collect money stashed away in the form of demonetized currency, by promising to exchange the same for 30 percent commission. They also used to lure the gullible people by offering to double their investments within seven days.

Reportedly, Ashok Umakanth Nayak, a ministerial staff of the SP office here, had handed over Rs 20,000 to Shankar Gama, as he had promised to return 60,000 within a week on October 21. The money was collected in the municipal park at Navanagar. Nayak also was promised give back thrice the amount of investment if more investments are made. Ashok Nayak grew suspicious about the promise and complained to Navanagar police.

Deputy superintendent of police, S B Girish, guided an investigation conducted by circle police inspectors, Sanjeev Kambli and Srishaila Gabi. During the raid they conducted on a private hotel on Saturday, 12 persons were caught, said district SP, C B Rishyanth.

It is said that the racket involves police personnel, a Reserve Bank of India employee, and some influential persons from Goa, Karnataka, Maharashtra, and Uttar Pradesh. The total amount so far involved in this business is said to be Rs 667 crore as per the current estimate. The police said they arrested 12 people and found Rs 40,000 in their possession, and their vehicles were not found. But stickers used for vehicles were recovered, the police stated, which aroused some suspicion.

The gang is said to be 15-member-strong including the official of the office of the SP here. One of the members is said to be a RBI employee. As per information, the employee of the SP office had taken leave and visited Mumbai to get confirmation that demonetized currency notes can be exchanged with the help of the above RBI employee. After he came back from Mumbai, the gang came to the town and stayed in a leading hotel located behind the district administration office since the last four days. They operated this money exchange and doubling scheme from this hotel.

As per information, recently a team of police led by the senior police officer transferred to the district recently had conducted raid on the said hotel during which Rs 20 lac worth of demonetized currency notes and Rs 22 lac worth of new currency notes were found. The person who was counting the notes belonged to the police department, and the gang had tried to flee. The gang, which was escaping in a vehicle, was apprehended from near Seemikeri bypass, it is said.