Seven people in Karnataka were arrested after the Enforcement Directorate seized Rs 93 lakh in new Rs 2,000 currency notes from them on Monday, PTI reported. Officials said that members of the economic intelligence agency posed as customers looking to illegally exchange their stash of demonetised currency.

The undercover operation found that the middlemen were colluding with bank officials to illegally exchange the demonetised currency for a 15%-35% commission, the report said. The seven people were charged under various sections of the Prevention of Money Laundering Act, 2002, the officials said, adding that an entire chain of middlemen is suspected to involved in the racket.

This is the latest seizure of new currency notes by law enforcement agencies following their introduction into the economy after Rs 500 and Rs 1,000 notes were demonetised by the Centre on November 8. Last week, the Income Tax department seized Rs 106.52 crore in cash during raids at eight locations in Chennai, out of which around Rs 10 crore was in new Rs 2,000 notes.

The Delhi Police on Saturday recovered more than Rs 13 crore after it raided the office of the T&T Law Firm in Delhi. Around Rs 2.5 crore was in new currency. In a public database of new currency seized, curated by public policy professional Meghnad S, nearly Rs 160 crore in new notes seems to have been recovered in raids and arrests till now.