Two persons were arrested here for possessing demonetised high-value currency notes of the face value of Rs 1.28 crore in and attempting to exchange them for new notes, the city police said on Thursday.
"Jemmy Rahul, 34, from the city, and Ajay, 26, from Uttara Kannada district in the coastal region, were arrested and the old currency notes were seized from them," Bengaluru Police Commissioner Praveen Sood told reporters here.
The duo was arrested under Section 7 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017, which entails a six-month imprisonment.
"On a tip-off, the City Crime Branch (CCB) police searched an apartment building in the city's western suburb and seized a car from its basement in which the accused had kept the banned notes to exchange for new ones," said Sood.
Sood announced a reward of Rs 25,000 for the CCB team for busting the racket.
After the central government banned old Rs 500 and Rs 1,000 currency notes on November 8, Parliament enacted the Specified Bank Notes Act to eliminate a parallel economy of demonetised notes.