Acting on tip off, the sleuths of ED swooped down on the premises of Maharaja Tailor in Mohali (Punjab) and at sector 22 in Chandigarh.
The seizure included Rs18 lakh in Rs2,000 denomination and while the rest was in Rs100 and 50 denominations, ED official said.
The ED sleuths said that they were verifying how the notes were exchanged and from whom, the owners of the shop bought the gold.
Officials were examining the bill books of the shop. The owners of the tailoring shop had allegedly bought 2.5 kg gold at a rate of Rs44,000 per 10 gram after demonetisation, they said.
Investigations were underway, ED officials said.
Meanwhile, the Chandigarh Police had arrested a senior bank employee of a private bank in Mohali for allegedly providing new currency to cloth merchant Inderpal Mahajan on commission basis.
ED had seized Rs2.19 crore including Rs17.74 lakh in Rs2,000 denomination, Rs12,500 in Rs500 denomination from the house of Mahajan on December 14.