Rs 4 crore 'hawala cash' seized in MP; two arrested on Sagar-Bhopal highway

Sagar (Madhya Pradesh), Nov 19 In a major crackdown on illegal money transfer networks, the Sagar district police intercepted a vehicle on the Sagar-Bhopal road in Madhya Pradesh, and recovered Rs 4 crore in unaccounted cash believed to be hawala money destined for Maharashtra.

Acting on specific intelligence, a special team of Moti Nagar police station laid a naka near Rahatgarh bypass around 11 p.m. Tuesday. When the vehicle was signalled to stop, the occupants initially tried to speed away but were chased and cornered within minutes. During vehicle checking, bundles of Rs 500 and Rs 2,000 notes were found cleverly concealed under the rear seats and in secret compartments.

Preliminary probe revealed the cash was being transported from Madhya Pradesh to Maharashtra through the hawala route, police sources said.

“The case has been handed over to the Income Tax department,” a well-placed source told IANS.

Two occupants -- a driver, who is a resident of Nagpur, and a co-passenger from Indore -- were immediately taken into custody. Both failed to produce any valid documents for the huge cash amount, violating Income Tax and RBI guidelines on cash movement, police sources said.

“The seized money is pure hawala transaction proceeds. We have handed over the accused and the cash to the Income Tax Department for further investigation,” said the source.

Income Tax teams from Sagar and Jabalpur have launched a detailed probe to trace the money trail, sources, and end beneficiaries.

Officials said the counting of notes has been completed under videography at Moti Nagar police station, and the Income Tax officials were informed.

Sources indicate the police are trying to investigate if the racket could be linked to funding some anti-national activity, though no connection has been established yet. However, they said further raids are likely at several locations to reach the end-point of the money trail, as leads from the arrested duo’s mobile phones may indicate connections with some bigger network.

This is the second major hawala seizure in Madhya Pradesh, highlighting intensified vigilance by central agencies and state police on cash movement during the election season. The accused have been booked under relevant sections of the Income Tax Act and IPC.

Further arrests are likely as the investigation progresses.

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