Income Tax officials raided eight premises in Chennai and one place in Vellore and seized Rs 105 crore in old and new currencies and gold bars worth Rs 35 crore. This is considered to be the biggest seizure since PM Narendra Modi announced The officials raided premises belonging to industrialist Shekhar Reddy, his associate Srinivasa Reddy and their agents, including a person called Prem Kumar. They also raided jewellery shops.
Out of Rs 105 crore, Rs 95 crore were in old notes and Rs 10 crore mostly in the newly introduced Rs 2,000 denomination currency.
The I-T department officials got a tip about Prem Kumar exchanging demonetised currencies for gold bars, and following his trail they stumbled upon the Reddy associates.
"While the Reddys claimed they had bought gold bars from jewellery shops, we are investigating how they managed to get Rs 10 crore in 2,000 denomination notes when there is a restriction on cash withdrawal from bank accounts and people are standing in queues for hours to withdraw money from banks and ATMs," said an I-T official.