₹1.38 Crore in Old Notes Seized in Telangana: 8 Arrested After Police Stop Suspicious Car

NewsDesk7 | Telangana | September 19, 2026: Telangana Police arrested eight people in Kazipet, Hanamkonda district, after intercepting a suspicious car during a vehicle check and allegedly recovering demonetised ₹500 and ₹1,000 notes with a face value of ₹1.38 crore.

According to police, the seized currency was allegedly being transported for circulation in exchange for valid money. The investigation is continuing to determine where the old notes came from and whether others were involved.

Police Intercept Car During Vehicle Check

The incident took place near Kazipet Crossroads during routine vehicle checking. A police team led by Kazipet Inspector Jakkula Shyam Sundar stopped and searched the vehicle after finding it suspicious.

During the search, officers reportedly recovered a large quantity of old ₹500 and ₹1,000 notes.

The seized demonetised currency had a face value of ₹1,38,50,000.

Cash, Phones and Car Also Seized

Apart from the old currency, police recovered:

₹1,38,50,000 in demonetised ₹500 and ₹1,000 notes
₹6,000 in valid currency
10 mobile phones
One car

Police subsequently arrested eight people in connection with the case.

What Was the Alleged Plan?

According to the police version reported by multiple outlets, the group allegedly intended to use the withdrawn currency to obtain genuine, valid money.

Kazipet ACP Pingili Prashanth Reddy said investigators were examining the alleged scheme and whether additional people were involved.

UNI reported that police suspect the old notes had been procured from a Chennai-based real-estate businessman and were allegedly being taken towards the Warangal-Hanamkonda area for exchange. These are police allegations and remain subject to investigation.

One Person Reportedly Absconding

Police said eight people were arrested, while another person allegedly connected to the case was reported to be absconding. The arrested individuals were remanded, according to police reports.

Authorities are investigating the source of the demonetised notes, their intended destination and whether the accused were part of a larger network.

Old ₹500 and ₹1,000 Notes Were Withdrawn in 2016

The recovered notes are from the ₹500 and ₹1,000 denominations that were withdrawn from legal tender following India's 2016 demonetisation.

Although these notes have no ordinary legal-tender value today, large quantities can still surface in investigations involving old cash, collections or alleged attempts to deceive people into exchanging them for valid currency.

Investigation Underway

Police have registered a case against the arrested individuals and are continuing their investigation. The seized phones, vehicle and currency could form part of the evidence as investigators examine the alleged network and the source of the notes.

Key Highlights
Location: Kazipet, Hanamkonda district, Telangana
Currency seized: ₹1.38 crore face value
Denominations: Old ₹500 and ₹1,000 notes
People arrested: 8
Other seizure: ₹6,000 valid cash, 10 mobile phones and a car
Police allegation: The notes were allegedly intended to be exchanged for genuine currency
Investigation: Police are probing the source and possible involvement of others