New Delhi, Dec 15 (IANS): A court here sent Axis Bank's suspended manager (operations) and a man, who were arrested in the case of alleged irregularities in conversion of demonetised notes, to judicial custody till December 26.

Additional Sessions Judge V.K. Yadav on Thursday remanded suspended manager (operations) Vineet Gupta and a man named Rajeev Singh Kushwaha in judicial custody after they were presented before him on expiry of Enforcement Directorate's (ED) custody.

Gupta, branch manger Shobit Sinha and Kushwaha, who is a practicing accountant, were arrested in a money laundering case at Axis Bank's Kashmere Gate branch here.

The court on Monday sent Sinha to 14-day judicial custody.

The three were accused of converting about Rs 40 crore in demonetised notes into gold through banking channels and are booked under the provisions of the Prevention of Money Laundering Act (PMLA).

According to the ED, Gupta and Kushwaha were allegedly involved in converting black money into white by reportedly misusing banking transfer systems like RTGS and NEFT in the wake of the demonetisation of Rs 500 and Rs 1,000 currency notes.

The ED has contended its probe revealed that Rs 40 crore worth of currency and several companies were involved in the case, and one gold brick worth Rs 39 lakh has been recovered from Sinha and another is yet to be recovered.