CBI arrests Tamil Nadu businessman in Rs 170 cr cash seizure case
The CBI yesterday arrested businessman J Sekar Reddy and his associate K Srinivasulu after Income Tax searches at his residence and office in Chennai resulted in seizure of 127 kg of gold and over Rs 170 crore in cash post demonetisation
The house of TN chief secretary PâÂÂRama Mohana Rao at Chennai
New Delhi: The CBI yesterday arrested businessman J Sekar Reddy and his associate K Srinivasulu after Income Tax searches at his residence and office in Chennai resulted in seizure of 127 kg of gold and over Rs 170 crore in cash post demonetisation.
CBI sources said his links with the son of Tamil Nadu Chief Secretary Nadu P Rama Mohana Rao are also under the scanner of I-T department as it is believed that Reddy, a contractor, allegedly received his help to get state-wide sand mining contract. Rao's premises were also searched by I-T department.
CBI has registered a case of criminal conspiracy and cheating under Indian Penal Code besides provisions of Prevention of Corruption Act against Reddy and his two associates for conversion of currency in violation of RBI norms, the sources said.
They said it was alleged that I-T department searches had resulted in seizure of over Rs 170 crore in cash which included newly-introduced notes of Rs 2,000 worth R34 crore (seized on two different occasions) besides 127 kg gold from him and his associates Srinivasa Reddy and Prem Kumar.
I-T raids TN Chief Secy
In perhaps the first case of a top bureaucrat being raided, the premises of the Tamil Nadu Chief Secretary was also yesterday searched by Income Tax officials who claimed to have recovered R30 lakh cash in new notes and 5 kg of gold besides getting “disclosure” about Rs 5 crore of unaccounted income. Income Tax sleuths launched the raids at 6 am at 15 places, including the office and residence of Chief Secretary Rao, his son Vivek and some relatives in Chennai and Chittoor in neighbouring Andhra Pradesh, I-T sources said.
Banks will not question depositors
Banks yesterday began accepting the junked Rs 500/1000 notes in KYC compliant accounts without any questions following RBI's rollback of its stiff conditions a day after customers were subjected to queries while depositing old currency totalling over Rs 5,000.
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