Sekhar Reddy along with his two alleged associates were arrested by Enforcement Directorate under PMLA.
A senior ED Officials said the three were arrested yesterday under provisions of the Prevention of Money Laundering Act (PMLA) and they were called for inquiring by the Enforcement Directorate (ED) here.
They also stated that Sand mining baron Reddy and his two partners K Sreenivasulu and P Kumar were later produced in a court which sent them to jail till March 28.
On December 9, the Income Tax Department, during a search, extracted ₹96.89 crore cash in old high denomination notes and ₹9.63 crore in ₹2,000 currency, along with gold weighing 127 kg, approximately worth ₹36.29 crore.
The next following day, another ₹24 crore in ₹2,000 notes was seized by the department.
They also arrested two other people in this case — Mahavir Hirani and Ashok Jain in December last year.
A complaint was filed against Reddy and his associates 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 department detected an unaccounted income of Rs 142 crore in this case with the seizure of Rs 34 crore in new notes, post demonetization.
The ED in a statement said Shekar told it that “cash seized by the Income Tax department belongs to his SRS mining company and he admitted that it was unaccounted money and he has not revealed the actual source of new currencies other than stating that it is from the sand mining business. He stated that the seized 177kg gold bars belong to him and the same was procured through his associates.”
The case filed against Reddy was considered as High-profile black money case being investigated in the aftermath of the notes ban. The case was investigated by at least four agencies- Income tax department, ED, Delhi Police and CBI.