Exchange of Rs 500 crore worth defunct notes through fake accounts in cooperative banks in Katni, MP

Opposition to raise note ban in budget session of parliament.

Bhopal, Jan 11 Madhya Pradesh Congress Committee (MPCC) today urged the Centre to probe the “suspicious” transactions made post-demonetisation through fake accounts in cooperatives banks in the state, especially the exchange of Rs 500 crore-worth scrapped notes in Katni district.
In a letter written to Union Finance Minister Arun Jaitley, MPCC chief Arun Yadav said, “An initial police inquiry unearthed a scam of exchanging the old currency notes to the tune of more than Rs 500 crore, by opening of fake accounts in cooperative banks in Katni district.”
The state Congress chief alleged that the name of a cabinet colleague of the Chief Minister Shivraj Singh Chouhan also figured along with other influential people in the Katni “scam”.

“Superintendent of Police (SP) of Katni district, Gaurav Tiwari, who unearthed this scam, was being pressurised to supress the facts. Instead of encouraging the official to inquire further, the state government transferred Tiwari under pressure from influential people,” Yadav alleged.
Tiwari was removed within six months of his posting, he said. “The state government cleared its intention by transferring the SP within six months of his posting and after these revelations,” Yadav added.
The Congress leader also urged Jaitley to order an inquiry into the scam in addition to all such transactions by cooperative banks in the state.
“We are receiving complaints regularly that those at the helm of the affairs in the state government have exchanged the old currency notes through the cooperative banks,” Yadav said while urging Jaitley to get an inquiry conducted into all such transactions across the state.
Yadav claimed that Tiwari had indicated that the amount may exceed Rs 500 crore.
Meanwhile, bandh was observed in Katni in protest against the transfer of Tiwari, who was transferred to Chhindwara district yesterday by the state government.