Tamil Nadu's sand mining baron Sekhar Reddy has been arrested again on Monday after a fresh investigation for illegal money exchange case. The Enforcement Directorate has accused him of money laundering after it raided his offices recovered crores of rupees in demonetised currency and new notes of Rs 2,000 in December.
In its report NDTV d a senior official of ED saying, "Shekar Reddy could not show any plausible income to the 34 crore worth new 2000 rupee notes and 129 kg gold recovered from him".
In December last year, the Income Tax department seized at least Rs 106 crore in cash, including Rs 10 crore in new currency, and gold bars weighing 127 kg in searches at multiple locations in the city to check tax evasion post demonetization.
It was the largest seizure of new currency notes after the note ban.
According to the officials, S Reddy, a contractor working with the state government, had claimed the entire money and the gold as his own and is being questioned.
After spending 87 days in the jail, reddy got the bail on Thursday. However, the ED arrested him again on Monday. Reddy's arrest has led to investigators raiding former Chief Secretary of Tamil Nadu Rama Mohana Rao and his son Vivek Pappisetty.
The CBI, I-T and the ED have been jointly probing the case and the main aim of the agencies is to investigate the role of the bank officials or the source of the new notes.