Sekhar, aide arrested by CBI for `131cr, 177kg gold

The CBI on Wednesday arrested PWD contractor and former board member of Tirumala Tirupati Devasthanams Sekhar Reddy and his business associate V. Srinivasulu under IPC sections of criminal conspiracy and cheating and the Prevention of Corruption Act.

I-T sleuths had seized a total of `131 crore in cash including `34 crore worth new currency notes of `2,000 and 177 kg gold from them during raids two weeks ago. After the two arrests, CBI sleuths are now expected to start hunting for bankers who helped Mr Reddy to get `34 crore worth new notes. The special principal court for CBI cases remanded Mr Reddy and Mr Sreenivasulu to judicial custody. Principal special judge court for CBI cases G. Vijayalakshmi remanded them at Puzhal prison up to January 3.

Soon after producing them before the court on Wednesday, the duo sought bail from the court. In the bail petition, they said they were innocent and the amount seized by the authorities was lawfully earned.

The CBI on Wednesday arrested PWD contractor and former board member of Tirumala Tirupati Devasthanams Sekhar Reddy and his business associate V. Srinivasulu under sections of criminal conspiracy, cheating and the Prevention of Corruption Act.

They said they run a company, JSR Infra.

On December 8, the I-T department raised Mr Sekhar Reddy’s residences and other office premises. They were engaged in sand mining business since 2003 for PWD. They have 425 lorries and 180 poclains, which were hired for sand mining. They earn about `25,000-30,000 from each lorry and `19,500 from each poclain per day. They generate revenue of `1.5 crore in cash across the state every day. The new currencies worth `34 crore were daily hiring charges collection from lorries and poclains since demonetisation.

In the last few years, their company's turnover touched `125 crore and they were paying tax regularly and nothing unusual for `34 crore business income found in hand. All the revenue has been reported and tax paid, they said. Meanwhile, CBI filed a petition seeking custody of the accused. The judge adjourned the bail petition and police custody petition to December 23.

On December 8, the I-T department raised Sekhar Reddy’s residences and other office premises.

ON DECEMBER 8, the I-T raided Sekhar’s residences and other office premises. They were engaged in sand mining since 2003 for PWD. They have 425 lorries and 180 poclains. They earn `30,000 from each lorry and `19,500 from each poclain every day.