Kasargod: A gang of five men has been arrested for exchanging demonetised Rs 500 and Rs 1000 currency notes on commission basis, on Friday.

P Nisar (42), M Naushad (39), P Harris (39), Mohammad Rafiq (30) and C H Siddique (39) are the arrested person.

The gang caught while they were paying Rs 7 lakh worth new currency notes as a exchange to Rs 10 lakh of old notes.

Police caught the accused red hand while money was being exchanged. Police seized Rs 6 lakh cash and a car which belonged to accused.

It is reported that huge amount of new currency notes were supplied by a trader from Kanhangad and the trader has also arrested.

Further investigation is going on to check whether the bank employees are also involved in the racket or not.