Chennai: The Enforcement Directorate (ED) has arrested sand mining baron J. Sekhar Reddy on charges of money laundering, three months after the CBI held him for exchanging crores of demonetised currencies.

"We arrested Reddy and his two associates K. Srinivasulu and Premkumar under the Prevention of Money Laundering Act (PMLA) here on Monday night for converting Rs 34-crore old notes into new notes that were seized by the Income Tax Department in mid-December," ED Joint Director S.V.V. Prasad told IANS.