Demonetisation impact: ED arrests Sekhar Reddy, 2 others in PMLA case

The ED has arrested sand mining baron J Sekhar Reddy and his two alleged associates in connection with a money laundering case registered post demonetisation.

Officials said the three were arrested on Monday under provisions of the Prevention of Money Laundering Act (PMLA) after they were called for questioning by the Enforcement Directorate (ED) in Chennai.

Reddy and his two associates, K Sreenivasulu and P Kumar, were later produced in a court which sent them to jail till March 28, 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 conditional bail.

The ED too had arrested two other people in this case — 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 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 are being probed by at least four agencies-- the ED, the Income Tax department, the CBI and Delhi Police, and are considered the two most high-profile black money cases being investigated in the aftermath of the notes ban.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel