A joint team of crime branch and Kotwali police intercepted the accused.
Police today seized unaccounted cash worth Rs 44.25 lakhs in now-defunct Rs 500 and Rs 1,000 denomination notes from a man, who is allegedly involved in trade of fake currency and illicit drugs in insurgency-hit Kondagaon district.
"Based on specific inputs, the cash along with jewellery, were seized this morning from Ramlal Dewangan, a native of Sargipali area in Kondagaon town," Kondagon Additional Superintendent of Police Maheshwar Naag told Press Trust of India.
After getting information that Dewangan was involved in activities like gambling, trade of illegal drugs and fake currency, a team of crime branch was keeping an eye on the accused from past few days, he said.
The officer said they got a tip off that Dewangan was trying to dispose huge cash and jewellery after the Central government's scrapping of high-value banknotes.
A joint team of crime branch and Kotwali police intercepted the accused when he was heading somewhere with a bag today.
"During search, unaccounted cash of Rs 44.25 lakhs in the denomination of old Rs 500 and Rs 1,000 notes, and gold jewellery worth Rs 2 lakhs were found in his bag," Mr Naag said, adding that Dewagan failed to produce valid documents to explain the cash and jewellery.
The seizure was done under section 102 of the CrPc, the ASP said, adding that investigation was on to ascertain the source of the money.
On a query about any Maoist connection with the money, the ASP replied, "The investigation will be done keeping in view all the angles. The matter as well as the seized items will be handed over to Income Tax department for further probe."
Cracking the whip on black money and counterfeiting, Prime Minister Narendra Modi had on Tuesday announced withdrawal of Rs 500 and Rs 1,000 banknotes from circulation, rendering them illegal tender.