The Enforcement Directorate (ED), Chennai, has attached movable properties worth ₹12 crore belonging to Ashok M. Jain and Mahaveer Hirani (also known as Mahaveer Jain alias Mahaveer Kumar), in the demonetised currency conversion case.
The Income Tax Department, during a search in December 2016, had seized new denomination currency notes to the tune of ₹34 crore, old denomination notes of ₹94.51 crore and 177 kg of gold bullion from offices and premises of industrialist and sand mining baron J. Sekar Reddy and his associates.
According to the ED, the CBI’s Anti Corruption Branch, Chennai, registered a case against Mr. Reddy and his associates. They alleged offences of cheating and conspiracy in conversion of the old notes to new ones to the tune of ₹34 crore. On the basis of an FIR registered by the CBI, investigations were initiated under provisions of the Prevention of Money Laundering Act, by the ED, Chennai Zonal Office.
A statement issued by K.S.V.V. Prasad, joint director, Enforcement Directorate (ED), Chennai, said, “In a follow-up action, the IT authorities seized demonetised currencies to the tune of ₹7 crore and about 6.5 kg gold valued at ₹1.8 crore from Mr. Ashok and about ₹3.25 crore from the premises of Mr. Mahaveer, proprietor of Deepak traders. Further investigation is in progress.”
Investigations also revealed that using people like Mr. Mahaveer and Mr. Ashok, in Chennai, about ₹6 to ₹7 crore of new currencies were obtained on commission basis by Mr. Reddy, through Parasmal Lodha, who was earlier arrested by ED in another case.”
