Bhatkal: The town police on Tuesday evening arrested five people, including the president of a co-operative society, and seized Rs 45 lacs of Rs 2000 denomination following a tip-off.

The arrested are Subrahmanya Vasappa Gowda, 39, a resident of Malali in Shivamogga district and president of the Kubera Multipurpose Co-operative Society, Teerthahalli, Shivamogga district and his four aides.

The police who had received a tip-off intercepted the Xylo car, whose number plate had been removed and upon inspection found the money stashed in a gunny bag. The suspects were unable to produce proper documentation for the money they were transporting.

The police duly notified the Income Tax officials in Mangaluru about the same.

Subrahmanya reportedly has said that the money was the deposits collected for the society from Nittur and other places.

It may be recalled that the police had seized Rs 2,000 notes amounting to Rs 4.5 lakh at Shamshuddin Circle here few days earlier.