The Enforcement Directorate (ED) on Wednesday announced that it has attached movable assets worth Rs 12 crore belonging to two persons in a demonetised currency conversion case.
In a statement here, the ED said it had attached moveable assets belonging to Ashok M. Jain and Mahaveer Hirani alias Mahaveer Jain alias Mahaveer Kumar in connection with the case.
According to the Directorate, the Income Tax (IT) Department seized new currency notes to the tune of Rs 34 crore, 177 kg of gold and Rs 94.51 crore of old Rs 500/1,000 notes from various premises linked to businessman Sekar Reddy and his associates.
The Central Bureau of Investigation (CBI) registered a case against Reddy and his associates for cheating and conspiracy in conversion of the old notes to the new ones to the tune of Rs 34 crore.
On its part, the ED initiated probe for money laundering against Reddy and his associates.
During the follow-up action, the IT Department seized demonetised currencies (old 500 and 1,000 rupee notes) to the tune of Rs 7 crore and about 6.5 kg gold valued at Rs 1.80 crore from the possession of Jain and about Rs 3.25 crore from the premises of Hirani, the proprietor of Deepak Traders.
The ED said the Prevention of Money Laundering Act (PMLA) investigations revealed Reddy getting around Rs 6-7 crore of new currency notes by using persons like Hirani and Jain through a person Parasmal Lodha.
Lodha had already been arrested by the Enforcement Directorate in a different case.
The ED said its investigations under the PMLA revealed that the moveable assets seized by the IT Department from Jain and Deepak Traders were proceeds of crime and hence Rs 10.25 crore of cash, 6.5 kg gold (valued Rs.1.80 crore) were attached provisionally under the PMLA.
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