Sekhar Reddy case: 30 kg gold attached

These gold bars were seized from the house of Prem Kumar, an associate of Sekhar Reddy, by the Income Tax department during a raid on Sekhar Reddy and partners of SRS Mining company. 

The accused, Prem Kumar, during interrogation by the Enforcement Directorate officials, had admitted that he had purchased the gold bars using demonetized and unaccounted cash received through their business, based on the instructions of Sekhar Reddy and the precious metal belonged to the SRS Mining firm. When Sekhar Reddy and another partner Srinivasulu admitted to the confession statement of Prem Kumar, two more partners, Rathinam and Ramachandran, denied the statement and said that they never instructed Prem Kumar to purchase gold using the cash of the company. 

An Enforcement Directorate press release said that the gold was purchased using the money got through criminal means and hence that has been attached. The accused had also deposed before the ED officials that they used to transport huge amount of cash by road without any valid documents and never kept a record for the collection and expenses for the amount collected from sand mining to conceal the illegal earnings from the accounted income.