The Enforcement Directorate, Chennai, has attached properties worth ₹34 crore under the Prevention of Money Laundering Act (PMLA) in a case related to alleged exchange of old notes for new currency notes by businessman J Sekar Reddy and his associates.

The Central Bureau of Investigation (CBI) had arrested Reddy, a former board member of the Tirumala Tirupathi Devasthanam, and his associate K Srinivasulu, last December in connection with the seizure of the notes.

The ED, in a release, said it is conducting an investigation against Reddy and others based on CBI cases registered, after the Income Tax Department seized ₹34 crore in new currency from them.

Reddy stated that cash seized by the I-T department belongs to his SRS mining company and admitted that it was unaccounted money, said the release. He did not divulge the source other than stating that it was from sand mining, the release added.

Gold bars Reddy’s associate K Srinivasulu had stated that he used to receive money from SRS and a portion of it was converted into gold bars through another associate, Prem Kumar, as instructed by Reddy. The remaining cash was kept at various locations and the same was seized by the I-T department.

However, he did not divulge the modus operandiof converting the old currency into new notes.

Investigations have revealed that the old demonetised currency were being converted to new notes through various persons on a commission basis, the release added.

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