Acting on specific information, the demonetised cash was seized and a Cuttack-based Jewellery trader was detained, Inspector Kendrapara Police station, Sanjeev Mohanty said.
"We are examining whether the scrapped notes were black money or not. The trader Paresh Nath Saha (40) has been detained and is being questioned by investigators," he said.
The vehicle has been impounded and the cash has been kept under police custody, he said and adding "We are examining whether the cash was black money or not. We are cross-checking his income tax returns to ascertain its source."
"The Income Tax department has been informed of the cash seizure. If the accused trader justifies the source of cash as legitimate, it will be duly returned to him," the officer said.