ED arrests 2 associates of businessman Sekhar Reddy in Chennai

The arrested duo were produced before the court on Wednesday and were sent to 11 days judicial custody.

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Officials of the Enforcement Directorate have unearthed a link between Chennai businessman Sekhar Reddy and money laundering kingpin Parasmal Lodha after arresting two of the latter's associates in Chennai.

Mahavir Hirani and Ashok Jain were arrested under the Prevention of Money Laundering Act for allegedly helping Sekhar Reddy acquire Rs 6-7 crore from Parasmal Lodha who was arrested by ED earlier.

Arrested

Sekhar Reddy is currently in CBI custody for alleged illegal monetary transaction. The duo is said to be the link between Reddy and Lodha and worked on a commission basis to exchange old demonetised notes with new legal tender. Searches in premises belonging to Ashok Jain unearthed Rs 10 crore in cash in demonetised notes and 6.5 kilograms of gold.

The duo's statements were recorded and both were produced before a court on Wednesday. Both have been sent to 11 days judicial custody. The arrests become key to establish how countrywide money laundering racket operated.

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