Bengaluru: The CBI on Tuesday arrested Senior Special Assistant of the Reserve Bank of India (RBI) in Bengaluru for his alleged involvement in currency exchange.
RBI officer K Michael and two other persons were arrested on charges of money laundering activities and unaccountable cash of Rs 16 lakh in new currency notes was recovered from their possession.
According to sources, Michael was involved in exchanging now defunct Rs 500 and Rs 1000 currency notes worth Rs 1.51 crore. He was trying to obtain new currency notes through the State Bank of Mysore in Bengaluru.
On December 10, CBI sleuths arrested JDS leader and casino owner K C Veerendra in connection with seizure of Rs 5.70 crore of new currency notes of Rs 2000 denomination from his premises in Karnataka.
They said Veerendra was produced before Special court in Bengaluru which has sent him to six days of CBI custody for questioning.
CBI sources said Veerendra allegedly connived with some bankers and middlemen to exchange demonetised currency with Rs 2,000 notes.
CBI has registered a case against officials of four banks--State Bank of India, State Bank of Mysore, ICICI Bank and Kotak Mahindra Bank.