The gold bars that belong to the TN businessman are attached by the ED

Chennai, May 29: Businessman J. Sekhar Reddy has been accused of cheating the currency notes of New Delhi. The Enforcement Directorate (ED) today said that 30 kg of gold bars worth Rs 8,56,99,350 have been temporarily added to Sekhar Reddy and his colleagues. Money laundering Act, 2002, Rules for Reddy and his followers in currency notes of Rs. Following the 34 crore temporary affiliation. In a statement issued here, the ED said following demonetisation of old Rs 500/1,000 notes, the the Income Tax Department searched various places belonging to Reddy, Managing Partner of SRS Mining, and seized about Rs 97 crore in old currency notes, Rs 34 crore in new currency notes and 177 kg of gold bars.
Subsequently, the Central Bureau of Investigation registered an FIR against Reddy and his associates for converting demonetised currencies into new currency notes in a fraudulent manner, the ED said. According to ED, Reddy was examined under the provisions of PMLA. "He has stated that cash seized by the Income Tax department belongs to his SRS Mining company and he admitted that it was unaccounted money. He has not divulged the actual source of new currencies other than stating that it is from the sand mining business," it said.
The ED said Reddy's associate Srinivasulu had stated that he used to receive money from SRS Mining and used part of it to be converted into gold bars through M. Premkumar as per Reddy's instructions. Remaining cash was kept at various premises and the same was earlier recovered and seized by Income Tax department, the ED said. "Partners of SRS Mining stated that they used to transport huge cash by road without accompanying accounts for the said amounts. It was admitted that they have not maintained any accounts against the collections, expenses, etc. So as to conceal the illegal earnings from the accounted income, they converted a part of such unaccounted monies into gold bars through Premkumar," it said in the statement.
The Income Tax department had recovered the 30 kg of gold bars from Premkumar's residence. According to ED, Premkumar had stated that he used to receive money from Reddy's associate Srinivasulu, for purchase of one kg gold bars. Acquired 30 kg of gold bars were purchased by Reddy's currencies. Srinivasulu and Reddy have agreed to collect gold bars from countless money related to SRS mining. However, they also rejected two partners - SRS mining, Ramchandran and Methodist. They said there was no indication that they could buy gold bars, which could be on the advice of Shekhar Reddy.