An assistant inspector (API) posted at the Santacruz police station was suspended Friday for allegedly cheating a Bandra-based builder of Rs 3 lakh earlier this week.
API Sanjay Mali was booked along with four of his associates after they allegedly cheated Sanjay Naik on the pretext of exchanging his demonetised currency.
While Mali has been suspended, three other accused — Raju Sawant, Maruti Gohil and Mahesh Shetty — were arrested.
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According to police, Naik has alleged that Mali referred him to Sawant, who previously worked as a homeguard, to exchange 500- and 1,000-rupee notes. Sawant promised to help Naik and asked him to come to a bank in Santacruz with the money.
“On November 15, Sawant took the bags from the builder, and drove off in a car waiting on the other side of the road. Naik later realised that he had been cheated and lodged a police complaint on Thursday,” an investigator said.
Police said one of the accused is yet to be arrested. The zonal deputy commissioner of police is heading an inquiry against Mali.