Mining baron J Sekhar Reddy arrested for money laundering

Source: The Hitavada      Date: 22 Mar 2017 09:20:41


Mar 21,


Reddy along with his two associates sent to jail till March 28

THE Enforcement Directorate (ED) has arrested sand mining baron J Sekhar Reddy and his two alleged associates in connection with one of the biggest black money and money laundering cases booked post-demonetisation.
Officials said that the agency arrested Reddy, K Sreenivasulu and Prem Kumar on Monday under provisions of the Prevention of Money Laundering Act (PMLA) after they were called for questioning at the Enforcement Directorate (ED) office here. The agency said it has “reasonable belief that these three persons are involved in money laundering.”

The three were later produced in a court which sent them to jail till March 28. They are now lodged in the Puzhal central jail, they added. Reddy was earlier arrested by the CBI too in the same case of alleged black money generation post demonetisation and was out on bail.
A total of five people have now been arrested in this case by the ED as it had earlier nabbed Mahavir Hirani and Ashok Jain in December last year.

The agency had filed a criminal complaint against Reddy and others based on a CBI FIR in the case which was registered after the I-T Department first searched his and his associates’ premises in November, 2016.

The ED in a statement said that Reddy told it that “cash seized by the Income Tax department belongs to his SRS mining company and he admitted that it was unaccounted money.The I-T Department has made one of the biggest detection of alleged unaccounted income of over Rs 142 crore in this case with the seizure of Rs 34 crore in new notes, post-demonetisation.

The Reddy case and the other involving Delhi-based lawyer Rohit Tandon and Kolkata-based businessman Paras Mal Lodha are being probed by at least four agencies-- the ED, the Income Tax Department, the CBI and Delhi Police, and are considered the most high-profile black money cases being investigated in the aftermath of the notes ban.