Kathmandu, April 12

Police have arrested two persons in possession of banned Indian currency notes with face value of INR 4.931 million.

Acting on a tip-off that Sunil Dev Baishya, 53, of Morang and Chet Bahadur Nepali, 50, of Nuwakot were bargaining with someone for exchange of demonetised Indian banknotes for Nepali rupees, police raided a room in Lazimpat and arrested them with the contraband yesterday.

SSP Bishwa Raj Pokharel, in-charge at Metropolitan Police Range, Kathmandu, said the duo were found carrying the defunct banknotes with the motive of cheating gullible and unwary persons. Further investigation has been launched to crack their nexus as we suspect more people are involved in the racket, he informed.

Baishya told the police that he sold a land to buy demonetised Indian banknotes at Rs 200 per INR 1,000 as ‘investment’ and sell it for Rs 400 to Rs 500. SSP Pokharel said police had seized notes of 1,000 and 500 denominations. Police are preparing to hand them over to the Department of Revenue Investigation.

Most of the racketeers smuggle the contraband to Nepal from India with the motive of earning profit by exchanging them for Nepali rupees.