Enforcement directorate attaches mining baron Sekhar Reddy's properties

Assets worth Rs 33.74 crore belonging to mining baron Sekhar Reddy were attached by the enforcement directorate. The ED attached properties that were seized during income tax raids on Reddy in Chennai following demonetisation. Cases were registered against the mining baron and two other accomplices after raids unearthed unaccounted assets in form of demonetised notes, gold and jewellery.

Unaccounted assets including 177 kgs of unaccounted gold worth more than Rs 50 crore and around Rs 140 crore in cash in both new and demonetised currency notes that were seized after raids on Reddy and his associates by Income tax officials.

"Assets seized from Reddy were proceeds of criminal activities. He has failed to explain the source of the assets and the money. He has also not explained how he had possession of such a large amount in cash soon after the Centre announced demonetisation six months ago, a time when banks did not have enough currency to disburse to their customers in exchange for demonetised notes," an ED note said.

Officials of the Enforcement Directorate suspect that Reddy and his accomplices may have secured the new notes at a premium in exchange for demonetised notes. The directorate has attached the assets under provisions of the Prevention of Money Laundering Act, 2002. In a statement given to the income tax department, Sekhar Reddy is said to have admitted that the case belonged to his company, SRS Mining and that he could not account for the money.

OneIndia News