Two held for converting old notes worth Rs 6 crore for businessman

"We have arrested two persons under PMLA involved in exchange of old notes to new currency notes of about Rs 6 crore for J. Sekhar Reddy," an ED official told IANS.

The Central Bureau of Investigation (CBI) last week arrested J. Sekhar Reddy, former Tirumala Tirupathi Devasthanam (TTD) Board member, and two others from Chennai for violations of the Prevention of Money Laundering Act (PMLA). 

The Income Tax (IT) department recently seized 177 kg of gold and cash totalling Rs 96 crore in old 500- and 1,000-rupee notes and Rs 34 crore in new currency notes from Reddy and two others.

Reddy had reportedly carried out a lot of construction work for the Tamil Nadu government.

Earlier in the morning, the ED officials arrested Delhi-based lawyer Rohit Tandon for converting demonetised currency worth over Rs 60 crore into new notes in connivance with Kotak Bank Manager Ashish Kumar and hawala trader Paras Mal Lodha.

Ashish Kumar was arrested on Wednesday and Lodha on December 21.