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Corrupt bank officials behind cash shortage: Rs39.98 lakhs in Rs2,000 notes seized in Kerala

Malappuram (Kerala), Dec 24: Busting a currency exchange racket, police have seized Rs 39.98 lakh in Rs 2,000 denomination notes at Tirur area in the district and arrested a man, already facing a hawala case, in this connection.
While Rs three lakh was seized from 63-year-old Shoukath Ali at the bus stand in Tirur, Rs 36.98 lakh in Rs 2,000 notes was recovered from the residence of a businessman, police said, noting the seizure and arrest were made yesterday.
Ali, hailing from Palakkad district, was produced before a magistrate's court and remanded in judicial custody today, police said.
A search was on for businessman Shabir Babu, who had allegedly given the Rs three lakh to Ali to exchange scrapped Rs 500 and Rs 1,000 notes.
Babu had also allegedly distributed new currency notes to nine other persons in exchange for scrapped notes, they said.
Ali had been arrested six months ago on charges of hawala transactions and is out on bail, police added. 
The series of IT raids to unearth black money following demonetisation, exposed large cache of black money stashed in the newly released Rs 2,000 and 500 notes. This speaks volumes on the corruption prevailing in India's banking system.
In order to nab culprit bank officials who connived with black money hoarders and help them in converting their black money into white, Finance Ministry has conducted sting operations in around 500 bank branches to expose corrupt bank employees.
As per reports, around 400 CDs with clinching evidence against these corrupt bank officials have reached finance ministry and action will be taken against such officials as and when the order is restored regarding supply of notes in the banking system.
There have been several reports coming from across the country where large cache of new currency notes have been seized by income tax officials. - PTI