Hyderabad: North zone police arrested 17 people, including two advocates and an ex-corporator, for carrying demonetised currency worth Rs 1.20 crore. Police said the gang was trying to exchange the currency by offering a huge commission.

Police raided a flat in Begumpet and recovered the stash. DCP B. Sumathi said the gang was trying to dupe people by offering them commission to exchange the old notes.

“The money belongs to two people, Shaik Subhan, a realtor, and Maram Reddy Pavan Kumar Reddy, a hookah parlour owner. Subhan, who belongs to Nellore, had brought Rs 90 lakh while Pavan Kumar had brought Rs 30 lakh,” said the DCP.

Both the suspects could not exchange it so far. The duo then came in contact with the other suspects, who planned to cheat people, police said. “The gang was trying to get people pay new currency for old ones. They offered double the amount in old currency for new ones,” the DCP said.

Police also suspect the gang was also exploring the possibility of exchanging the currency at the RBI with the help of others before the March 31 deadline. Police said that on Monday midnight sub inspector U. Madhu of Begumpet found a group near the arch of Pochamma Temple while patrolling.

When the SI questioned them they could not give a proper reply and one of them started running away. Following him, police found the apartment, where the cash was stashed up.