The Enforcement Directorate (ED) arrested mining baron Sekar Reddy again based on fresh investigation for illegal money exchange case. Reddy has been sent to judicial custody till March 28.

While the entire country was in a standstill due to the cash crisis because of demonetisation, few people were busy hoarding their new currency. Among them was Reddy, his associates Prem Kumar and Srinivasulu who were arrested last year after Rs 130 crore and 177kg of gold was seized from them. From the cash that was seized, close to Rs 34 crore was in the new 2000 denomination.

After spending 87 days in the jail, based on the third appeal the special court for Central Bureau of Investigation (CBI) on March 17 granted all the three a conditional bail. However, the ED arrested Reddy again. 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 investigating 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. As of now, though the serial numbers of all the notes have been given by the Reserve Bank of India, tracing the bank officials in the case has not been possible yet.

HIGH-PROFILE CONNECTIONS

Reddy owns over a dozen sand quarries in Vellore and he has also handled many government projects, which included the widening of Madurai Ring Road, East Coast Road in Chennai and some World Bank-funded projects. Also, an important fact that came to the limelight soon after the arrest of Reddy was that he has close connections with many influential people in the state. He was also seen in a picture with former Chief Minister O Panneerselvam.

The CBI, which has filed case of conspiracy (IPC section 120b), criminal breach of trust (409) and cheating (420)and corruption under the prevention of corruption Act, 1988, said that they are not just investigating the links of the source of the new notes but many other angles are being probed too. The investigation agencies are also trying to find if the three taken into custody were agents hoarding large sum of money of influential people.

Also read: Karnataka HC quashes ED proceedings against mining baron Gali Janardhan Reddy under Money Laundering Act

Also read: Demonetisation case: ED arrests owner of diamond import firm Rajeshwar Exports for laundering over Rs 1478 crore