City Police, along with Income Tax sleuths, nabbed a gang on Monday night for illegally exchanging cancelled denominations for new Rs. 2000 notes beside an ATM inside the Krishna College of Engineering and Technology premises.

Police also seized Rs. 1.3 crore from the six-member gang.

According to Police, they received a tip off from Anbarasan, brother of State Municipal Administration Minister, S.P. Velumani, that a gang involved in the illegal exchange, was misusing the Minister’s name for the transactions.

Officials have been receiving information about the exchange, but we were waiting for right moment to nab the gang that was also using the institution’s name, police said.

Immediately after receiving the tip off, police rushed to the college at 10.30 p.m. and arrested the culprits. Three were identified as Tamilselvan, Loganathan and Manikandan.

The IT officials were checking whether the agents have any link with banks in the city. Sleuths of Income Tax department also conducted a raid in the college premises.

Police said such operations would continue as they were receiving complaints of several such illegal exchanges in the city.