Bhatkal: The town police have arrested five people, including the president of a co-operative society, while they were transporting Rs 2,000 notes amounting to Rs 35 lakh here on Tuesday evening. The police have seized the money and the vehicle. 

The arrested are Subrahmanya Vasappa Gowda, 39, a resident of Malali in Hosanagar taluk, Shivamogga district and president of the Kubera Multipurpose Co-operative Society, Teerthahalli, Shivamogga district and his four accomplices. The suspects were transporting the money in a Xylo car, whose number plate had been removed. The police, following a tip-off, inspected the vehicle and found the currency notes stocked in a gunny bag. The suspects could not produce proper records for the money they were transporting. The police have alerted Income Tax officials in Mangaluru in this connection. 

Subrahmanya claimed that the money was the deposits collected for the society from Nittur and other places. The police had, a few days ago, seized Rs 2,000 notes amounting to Rs 4.5 lakh at Shamshuddin Circle in the town.