The Enforcement Directorate (ED) examined industrialist and sand mining baron J. Sekhar Reddy under the provisions of Prevention of Money Laundering Act 2002. According to KSVV Prasad, Joint Director, Enforcement Directorate, Chennai, Mr. Reddy has stated that the cash seized by the Income Tax department during the raids that it conducted in December 2016 belongs to his SRS mining. “He has admitted that it was unaccounted money. He has not divulged the actual source of new currencies other than stating that it is from the sand mining business. He stated that seized 177 kg gold bars belongs to him and the same was procured through Premkumar (an associate),” added Mr. Prasad. On interrogation, Premkumar admitted that he said he supplied one kg gold bars to Mr. Reddy.
Srinivasulu, Reddy’s business partner, said he received money from SRS mining and used the same for converting into gold bars with the help of Premkumar, the ED official said.