New Delhi, Jul 7 (IANS): The Delhi Police on Thursday said that they have arrested a man, who was found in possession of demonetized currency of Rs 500 and RS 1000 from East Delhi's Laxmi Nagar.

A senior police official said that the man was identified as Dr Azaz Ahmed Khan, a local resident. He was arrested from the Ramesh Park area of Laxmi Nagar.

"Old currency notes of Rs 500 and 1000 have been found from him. The total count was Rs 62 lakh. He told us that he bought this currency from different persons after paying them Rs 14 lakh in new notes," said the police official.

However, the police were not satisfied with his answers. When he was grilled, he said that he would sell this for Rs 20 lakh.

Seeing the gravity of the matter, the police called the Special Cell and Intelligence Bureau (IB) officials. The team of Special Cell and IB has also recorded his statement.

"We are trying to know how he used to sell the demonetized currency and who were the buyers. We are also trying to know who sold him the old currency," said the police official.

The police said that a case has been lodged and they were further looking into the matter.