The Enforcement Directorate has seized Rs 2.20 crore from the premises of a cloth trader here as part of its operation to check hawala trade in the wake of demonetisation.
Chandigarh's Deputy Superintendent of Police (Central) Ram Gopal said the accused Inderpal Mahajan was arrested today.
A case has been registered against Mahajan under section 409 (criminal breach of trust by public servant, or by banker, merchant or agent), 420 (cheating) and 120 B (conspiracy) of IPC and section 7 and 13 of the Prevention of Corruption Act, he said.
Gopal said an FIR against unidentified bank officials has also been registered.
Acting on a tip off, the ED sleuths had yesterday evening swooped down on the premises of the cloth merchant at Sector 22 here and seized the 'illegal' cash, which was stashed in a bed box besides in a trunk and a bag, the officials said.
"We have seized Rs 2,19,85,500 of cash in this operation," an ED official said.
The illegal cash comprised Rs 1.50 crore of demonetised currency, Rs 49.80 lakhs in Rs 100 denomination, Rs 17.74 lakhs in Rs 2,000 denomination, Rs 12,500 in Rs 500 denomination, while rest of the cash was in Rs 10, Rs 20 and Rs 50 denomination, officials said.
Besides, four lockers have also been seized in this operation led by ED's Deputy Director Gurnam Singh, they said.
"We are looking at the angle of money laundering in this case," they said.
Officials said that they would examine the bank accounts of the accused to find out how much cash he deposited in them post demonetisation.
However, Mahajan while talking to media outside the police station said that he was "being trapped".
Police said the ED team had taken the illegal cash in its custody for further investigation.
The action has been taken under the provisions of the Foreign Exchange Management Act (FEMA) and the searches are still on, they said.
The Enforcement Directorate has been undertaking searches and enquiry at various places in the wake of demonetisation.
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