Chennai police have seized bundles of Rs500 and Rs1,000 notes worth Rs45 crore (US$6.9 million) in demonetised currency from a textile shop.
Following a tip-off, on Thursday morning, police raided MV Ramalingam & Co, which specializes in making uniforms for government officers, in Kodambakkam.
India Today reported that the proprietor, Dhandapani, 50, claimed that another person had given him the money for safekeeping.
Income Tax and Enforcement Directorate officials were informed about the seizure.
Police are expected to file charges against Dhandapani under the I-T Act. If convicted, he could face a four-year jail term.