Former Congress MLA Rajesh Jain, who was arrested last month for allegedly making illegal transactions following notes ban, had helped exchange demonetised notes worth Rs 4.5 crore, police said.

The Crime Branch had arrested Jain for allegedly conspiring with lawyer Rohit Tandon and some others to make illegal transactions by using fake bank accounts worth Rs 50 crore. During interrogation, Jain was found to be in touch with a businessman Yogesh Mittal.

Mittal was arrested by the Enforcement Directorate in June for allegedly "picking up demonetised cash of Tandon during 14-19 November last year and depositing in various bank accounts of shell companies," the police said.

It was found that demonetised currency worth Rs 4.5 crore was deposited in Jain's two bank accounts last year and he had charged a commission for getting it deposited in his account.