New Delhi, Dec 5: Two managers of Axis bank were arrested by the Enforcement Directorate (ED) on charges of money laundering. The ED was probing a case of money laundering for alleged irregularities in conversion of banned notes of Rs. 500 and 1000 and supply of new notes.

The two accused working as managers in the Kashmere Gate branch of Axis bank were arrested on late Sunday under the provisions of the Prevention of Money Laundering Act (PMLA). Both of them will be produced at Tis Hazari court on Monday for further custody.

According to PTI, a gold bar, which could be part of alleged kickbacks payment to the bankers, have been seized by ED. According to the ED, the duo were allegedly indulged in converting the black money into white by reportedly misusing banking transfer systems in the wake of the demonetisation drive introduced on November 8.

Axis bank have suspended the two accused following the arrests and release a statement confirming their suspension and said the bank is cooperating with the investigating agencies.

According to a report, the matter came into light when on November 23, three people in Delhi were arrested with old banned notes worth more than three crores. Delhi police was reportedly tipped off about the case and soon they seized the three accused. It was then revealed that they charge 15-20 per cent of the old currency value to deposit banned notes in various bank accounts. The police later passed on the information to the I-T department which initiated a probe.

The report further stated that, black marketeers collected Rs.20 crore in old currency and were looking for people who could turn that in new cash. It was then that they came across the Axis bank managers. The managers reportedly agreed to the proposition of the black marketeer, provided they were given 15 per cent of the old notes.

Following the arrests on Sunday, many bank accounts are under scanner and are being investigated by the ED in this case. The Income Tax department has also been active in the case and are surveying banks and has searched the residence of the accused.