A CBI court on Wednesday remanded J Sekar Reddy and his associate K Srinivasulu, from whose premises Income Tax department seized 127 kg gold and over Rs 170 crore in cash, in judicial custody till January 3, 2017.
They were remanded in custody by special judge for CBI cases Vijayalakshmi. In its FIR, CBI said the case against them was that the two had exchanged Rs 34 crore as new currency out of the total seized amount.
Both had changed the currency within 24 days from the date the demonetisation was announced (November 8), the FIR stated. Both were charged under IPC sections 409 (criminal breach of trust by public servant, or by banker, merchant or agent), 420 (cheating and dishonestly inducing delivery of property) and 120B (punishment of criminal conspiracy) and under 13(1) and (2) of Prevention of Corruption Act.
The judge also posted to December 23 the bail pleas by Reddy and Srinivasalu and a petition by CBI seeking the two into its custody.
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 Rs 34 crore (seized in two different occasions) besides 127 kg gold from him and his associates Srinivasa Reddy and Prem Kumar.
CBI case is related to seizure of Rs 24 crore of new currency notes from a Tata Ace load vehicle belonging to a Vellore resident, Rishi Kumar, on December 9 following searches at Reddy’s residence in Chennai.
“Reddy and his associates had, with the help of unknown public servants of different banks, converted the unauthorised cash held by them in old currency notes, thereby depriving the public in enforcing their right,” CBI alleged in its FIR.
It said the bank officials, who are allegedly entrusted with the distribution of new currency notes as per instructions of Reserve Bank of India, defied the RBI instructions and helped Reddy for a “consideration”.
“Reddy, Prem Kumar and K Srinivasulu, had in conspiracy with unknown bank officials and public servants converted unaccounted cash held by them in the form of old currency notes to new Rs 2,000 currency notes, cheating the government of India,” it alleged.
CBI books IRS officer for amassing DA of Rs 3.28 cr
An Indian Revenue Service Officer posted as Additional Commissioner Income Tax has been booked by CBI for allegedly amassing disproportionate assets to the tune of Rs 3 crore, which is about 295 per cent above his known sources of income.
CBI has alleged that 1999-batch IRS officer S Murali Mohan, Additional Commissioner Income Tax, Chennai, amassed assets to the tune of Rs 3.28 crore between 2002 and 2014 which he could not satisfactorily explain.
It is alleged that Mohan amassed movable and immovable assets in the name of his wife and mother during the period which included plots in Hayat Nagar, Hyderabad, Manikonda and Khammam district in Telangana.
CBI has alleged that Mohan had amassed assets to the tune of Rs 3.94 crore of which assets worth Rs 3.28 crore were disproportionate to the known sources of income.