Key Points
- Delhi Police Crime Branch recovered ₹3.5 crore in demonetized notes near Shalimar Bagh Metro Station Gate 4
- Four accused arrested: Harsh, Tek Chand, Lakshya, and Vipin Kumar, caught during illegal transaction
- Accused were buying banned currency at discounted rates, claiming RBI would exchange them
- Two vehicles seized, case registered under Specified Bank Notes Act and fraud sections
- Police investigating larger gang network and source of the massive currency haul
- Operation highlights continued illegal trade of demonetized notes even after nine years
Acting on a specific tip-off about illegal demonetised currency trade, Delhi Police Crime Branch conducted a meticulously planned raid near Gate Number 4 of Shalimar Bagh Metro Station on Tuesday evening. The operation resulted in the arrest of four accused individuals who were caught red-handed with large bundles of old ₹500 and ₹1000 notes. The seized currency, totalling over ₹3.5 crore, was packed in multiple bags and suitcases in two vehicles, a white Hyundai Creta and a black Mahindra Scorpio, which were also confiscated by the police.
The arrested individuals have been identified as Harsh (32) from Rohini, Tek Chand (45) from Bawana, Lakshya (28) from Pitampura, and Vipin Kumar (41) from Sonipat, Haryana. According to police sources, the gang had been operating for several months, targeting gullible citizens who were unaware of the current legal status of demonetised currency. The accused were purchasing the banned notes at rates as low as 10-15% of their face value, exploiting people’s desperation and lack of awareness.
False RBI Exchange Scam
During intensive interrogation at the Crime Branch headquarters, the accused confessed to running a sophisticated fraud operation. They admitted to deceiving people by falsely claiming that the old currency could still be exchanged at the Reserve Bank of India (RBI) through a “special window” for senior citizens and charitable trusts. This fabricated narrative helped them acquire massive quantities of demonetized notes from elderly citizens, rural households, and even some small business owners who had hoarded the cash post-demonetization.
The gang maintained a network of middlemen across Delhi-NCR who would identify potential sellers and negotiate deals. They operated through coded messages and used metro stations as convenient meeting points to avoid suspicion. Police revealed that the accused had no valid documentation or legitimate reason to possess such a large quantity of these notes, making their possession a clear violation of the law.
Legal Framework and Charges
Possession, buying, or selling of demonetized currency notes after November 8, 2016, constitutes a punishable offense under the Specified Bank Notes (Cessation of Liabilities) Act, 2017. Based on this legislation, Delhi Police have registered a comprehensive case against the accused under multiple sections of the Indian Penal Code, including Section 420 (cheating), Section 120B (criminal conspiracy), and relevant sections of the Demonetization Act.
Legal experts note that the maximum punishment under the Specified Bank Notes Act can extend up to four years of imprisonment or a fine of up to ₹5 lakh, or both. The addition of fraud charges could increase the severity of the sentences. The police have also invoked sections of the Prevention of Money Laundering Act (PMLA) as the scale of the operation suggests possible money laundering activities.
Investigation and Network Dismantling
The current operation has opened a Pandora’s box, revealing that illegal currency rackets remain active nearly nine years after demonetization. Deputy Commissioner of Police (Crime Branch), Rajesh Deo, stated that the investigation is now focused on identifying the entire network, including the sources from where the accused procured such a large quantity of currency and the intended destination of these notes.
Police are examining the call detail records of the accused and tracking financial transactions to uncover the masterminds behind this racket. Preliminary investigation suggests that the gang may have links to similar modules operating in other metro cities. The Crime Branch is coordinating with other state police forces and central agencies to map the complete supply chain. Forensic analysis of the seized currency notes is also underway to determine their origin and whether they were part of any previously reported theft or fraud cases.
Latest Updates and Context
This seizure comes amid a recent uptick in demonetised currency cases across India. In October 2025, Mumbai Police recovered ₹2.8 crore in old notes, while Kolkata Police busted a similar racket in September. The RBI has repeatedly clarified that demonetised notes cannot be exchanged under any circumstances, yet misinformation continues to circulate on social media platforms, enabling such frauds.
Cybercrime experts point out that WhatsApp groups and Telegram channels are being used to spread false information about “RBI special exchange schemes,” primarily targeting senior citizens. The Delhi Police have announced they will intensify public awareness campaigns and conduct similar operations at other potential hotspots. The arrested accused will be produced in court on December 12, with police seeking custody for further interrogation.
