Bengaluru: Two people from Gujarat have been arrested in the city for running a hawala racket in the city on Thursday.

The two men were allegedly operating an illegal money transfer racket, police said on Friday.

Based on information received by the police, the police team arrested both men from Nagarathpet on Thursday.

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The police officers have seized Rs 4.5 lakh cash and two mobile phones from them.

The accused whose identities have not yet been revealed hail from Mehsana district of Gujarat.

A case has been registered against them under the relevant sections of the Prevention of Money Laundering Act.

The Karnataka police’s probe into drugs, hawala, terror funding has widened in Bengaluru and Karnataka after the recent Sandalwood drugs case got the attention of the police sleuths and the media.