The city police on Saturday arrested eight of a 10- member gang that was collecting demonetised notes in exchange of new notes for half the value of the former. A total of ₹7.23 lakh in the demonetised ₹1,000 and ₹500 notes were seized from the gang’s possession. According to police, the gang members — Thota Sai Venkat (31), T. Kamal Kumar (38), Nalla Harish (32), Ch. Gopala Krishna (24), Chinta Kishore (36), K. Venkateswara Rao (38), J. Jeevan (25), K. Vijay Kumar (26) and two others — gathered at the PWD grounds on Friday to haul the demonetised cash. Acting on a tip-off, the Task Force police and the Suryaraopet police conducted a raid and arrested eight of them while two managed to escape. Explaining the modus operandi of the gang, police said that the members would approach elderly people asking if they had any demonetised notes. They would offer to give new notes for 50% face value of the demonetised notes. The gang so far managed to collect ₹7. 23 lakh in old currency and had plans to exchange them for total value with new notes. It is unclear how the gang could get rid of the old notes which have no value after demonetisation. Police seized 10 cell phones, a car and two motorcycles from the gang members.
Suryaraopet police registered a case.