In a significant operation against illegal cash movement, police in Madhya Pradesh’s Sagar district seized Rs 4 crore in unaccounted money believed to be linked to a hawala network operating between the state and Maharashtra.
Acting on specific intelligence inputs, a special team from the Moti Nagar police station set up a checkpoint near the Rahatgarh bypass late on Tuesday night. When officers attempted to stop a suspected vehicle around 11 p.m., the occupants tried to flee but were intercepted after a brief chase.
During inspection, officials found bundles of Rs 500 and Rs 2,000 notes concealed beneath the rear seats and in hidden compartments. Initial inquiries suggest the cash was being transported from Madhya Pradesh to Maharashtra through underground hawala channels, according to police sources.
The two men in the vehicle, a driver from Nagpur and a passenger from Indore, were detained after they failed to produce any documents to justify the cash, in violation of Income Tax and RBI rules on large cash movement.
“The seized amount is clearly the proceeds of hawala transactions. Both the accused and the cash have been handed over to the Income Tax Department for further action,” a senior official said.
Income Tax teams from Sagar and Jabalpur have begun tracing the money trail, with investigators examining whether the funds might be linked to a wider network. Sources said the counting of the notes was completed under videography at the Moti Nagar police station before the Income Tax Department was informed.
Investigators are analysing mobile phones recovered from the arrested duo to identify potential links to larger operators. Police have not ruled out the possibility of the money being tied to other illegal activities, although no such connection has been established so far. More raids are expected based on emerging leads.
This marks the second major hawala cash seizure in Madhya Pradesh in recent weeks, reflecting intensified surveillance by state police and central agencies during the election period. The accused have been booked under relevant provisions of the Income Tax Act and the IPC as the probe continues.
