2 held for converting scrapped currency worth Rs 6 crore for industrialist Sekhar Reddy

New Delhi: Two persons have been arrested for converting demonetised Rs 500 and Rs 1,000 currency notes worth over Rs 6 crore into new currency on behalf of a Tamil Nadu-based businessman, the Enforcement Directorate (ED) said on Thursday. "We have arrested two persons under PMLA involved in exchange of old notes to new currency notes of about Rs 6 crore for J. Shekhar Reddy," an ED official said. 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. The ED officials earlier arrested Paras Mal  Lodha, a leading businessman with interests in real estate and mining, for converting over Rs 25 crore demonetised notes linked to Rohit Tandon and industrialist J. Sekhar Reddy. Earlier in the morning today, 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. Also read: Rohit Tandon, Delhi lawyer, arrested by ED: Important facts to know