Constable, 2 others held with scrapped notes

The arrest of a police constable and two others, who were found to be in possession of Rs 1.5 crore in demonetised notes in Moradabad's Dilari, has created a flutter since police claimed that some bank officials were also involved in the racket.

- HT Correspondent

MEERUT:

While the district police said they had exposed the well-organised racket that involved illegal exchange of scrapped notes, they noted that how these notes found their way into the banking system needed a thorough investigation.

The seized currency included 14,636 ₹500 notes and 7,681 ₹1,000 notes, which have been out of circulation since the government's demonetisation move on November 8, 2016.

As per the existing norms, banks are not allowed to accept phased-out currency notes.

Meanwhile, police slapped sections 318(4)/62/61(2)(a) of the Bharatiya Nyaya Sanhita (BNS) and Sections 5/7 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017 against the accused. The BNS sections deal with cheating, attempts to commit offences, and criminal conspiracy.