In addition to the present attachment, ED till date has attached Rs 10 crores in demonetized currencies, 6.5 kg gold bullion, Rs 34 crores of new currency and 30 kg of gold seized
The Enforcement Directorate has attached 50 kg gold bars worth Rs 13. 96 crore of Industrialist and sand mining baron J. Sekhar Reddy and his associates in case under probe for exchange of demonetized currency notes to new currency notes under the provisions of Prevention of Money Laundering Act.
"On reasonable belief that the seized 49.480 kgs of gold bars valued at Rs 13,96,88,246 are part of proceeds of crime, the same were provisionally attached under the provisions of PMLA," said a senior ED officer.
In addition to the present attachment, ED till date has attached Rs 10 crores in demonetized currencies, 6.5 kg gold bullion, Rs 34 crores of new currency and 30 kg of gold seized. The total attachments in this case adds up to about Rs 68.5 crores.
Earlier, Income Tax department had conducted searches at various places of Reddy of SRS Mining and seized about Rs 97 crores of old currencies, Rs 34 crores of New currencies and about 177 kgs of gold bars.
Based on the same, CBI had registered FIRs against them alleging conversion of demonetized currencies in to new currencies fraudulently. As the alleged offences are scheduled offences, ED initiated investigations under PMLA against Reddy and others.
Reddy during investigation has admitted that cash seized by the Income Tax department belongs to his SRS mining Company and it was unaccounted money. However, he has not divulged the actual source of new currencies other than stating that it is from the sand mining business. They converted a part of such unaccounted monies in to Gold bars through Premkumar.
Premkumar confirmed that he used to receive money from K. Srinivasulu, associate of Reddy, for purchase of gold bars. From November 20 to December 7, 2016 he has purchased about 80 kg gold, by cash from various persons on behalf of K. Srinivasulu. He further added that no bills or vouchers were maintained by him for the said procurement of gold.
Srinivasulu corroborated that he used to receive money from SRS mining and used to use a part of the same for converting into gold bars through Premakumar as per the instructions of Sekhar Reddy. Remaining cash was kept at various premises and the same was earlier recovered and seized by Income Tax department.
On being asked about seizure of about 49.480 kgs of gold from premises of SRS mining, he informed that same was procured through Premkumar, paying the cash received from partners of SRS Mining.
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