A senior RBI official was arrested for allegedly money laundering (helping convert banned notes) in Bengaluru. Other eight men were also arrested in a series of raids in which crores in new notes have been found.
K Michael is a senior special assistant with the RBI Bengaluru and was arrested by CBI. He helped in converting black and untaxed money. In one of the cases, more than Rs. 1.5 crore was involved.
Investigators pretended to be customers to catch the eight middlemen allegedly involved in laundering black or untaxed money for a price.
Sources in the Enforcement Directorate said that the arrested men are suspected to be part of a wider ring that operated not just in Bengaluru but in other districts too.