On 14 April, police raided the residence of former Bengaluru City Corporation corporator V. Nagaraj and seized Rs.14.8 crore of demonetised notes.

Bengaluru: Ten people were arrested with demonetised currency amounting to over Rs 3 crore they were trying to change into new notes, said police on Monday.

"On a tip-off, we searched a car parked near a temple in Basavangudi and found demonetised Rs 500 and Rs 1,000 notes amounting to Rs.3.25 crore the accused were attempting to exchange for new notes," Deputy Commissioner of Police, Bengaluru South, S.D. Sharanappa told reporters here.

The accused have been identified as V. Srinivas 43, M. Mahesh, 32, P. Karunakaran, 48, Abdul Mujeeb, 40, S. Neelakanta, 32, H.G. Jambane Gowda, 62, A. Narayana, 48, K. Udayakumar, 34, S. Karthik, 32, and P. Rudrakumar 47.

A case has been registered against them under Sections 5 & 7 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017.

"Three more persons, Prasad, Shashi and Rajendra are absconding, and we have formed a special team to search and nab them," said Sharanappa.

On 14 April, police raided the residence of former Bengaluru City Corporation corporator V. Nagaraj and seized Rs.14.8 crore of demonetised notes.

Nagaraj was arrested on May 10 along with his two sons and have been remanded to police custody till May 22 in the money laundering case.