ED arrests three in connection with illegally converting old currency.

The Enforcement Directorate (ED) has arrested three persons from Chennai in involvement with illegally converting old currency. 177 kg gold bars belonging to them have also been seized.

The persons were arrested under the provisions of ....(PMLA) for laundering money and were produced before the Jurisdictional Magistrate and were remanded to the judicial custody up to March 28.

The accused are identified as J. Sekhar Reddy, and his associates Srinivasulu and Prem kumar.

Accused Reddy has stated that cash seized by the Income Tax department belongs to his SRS mining company, but he has evaded the actual source of new currencies.

During investigation, Prem kumar, another accused, agreed that he supplied gold bars of 1kg to Sekhar Reddy. He stated that he used to receive demonetised currencies for procurring gold bars, through Srinivasulu, an associate of Sekhar Reddy.

The third accused Srinivasulu used to receive money from SRS mining and used it for converting into gold bars through Prem kumar.

Further investigation is in progress.