Bengaluru money laundering case: Jayachandra in CBI custody

SC Jayachandra, a chief project officer of Karnataka State Highways Development Project, has been sent to five day CBI custody as he failed to meet bail conditions in connection with a case relating to alleged illegal conversion of demonetised notes.

“Jayachandra was produced before the CBI Court on Thursday and granted interim bail, but was sent to five-day CBI custody after he failed to meet bail conditions,” a CBI official told PTI  in Bengaluru.

He said Jayachandra met most bail conditions, but failed to submit his passport to the court as prescribed.

“He has now been imprisoned in Parapanna Agrahara Jail,” the official said.

Unearthing a racket involved in illegal conversion of demonetised notes, the Enforcement Directorate had arrested seven alleged middlemen, including Jayachandra recently and seized Rs 91.94 lakh in new currency in Karnataka as part of its money laundering probe.

The case emerges from a December 1 seizure made by the Income Tax department in Bengaluru of Rs 57 crore in Rs 2000 notes.

The ED had booked a money laundering case against a number of people, including Jayachandra, based on a CBI FIR in the case. Jayachandra was later arrested by ED.