In a major impact of the demonetization policy, since its implementation on November 8, Tamil Nadu sand mining baron, Shekar Reddy, had been arrested following massive seizure after the Income Tax department raided his premises.
Reddy and his associates with the help of unknown public-serving in various banks converted the old currency notes. He has been booked for criminal conspiracy and cheating. The move came after earlier this month Income-tax Department conduct searches in Chennai and found Rs 170 crore in cash and 127 Kg of Gold bars, out of this Rs 34 crore were of new Rs 2000 notes.
Hence J Shekhar Reddy and his associate have been arrested for illegal exchange of new currency notes. It is further alleged those bank officials who helped Reddy to exchange the old currency notes for new ones have cheated the government of India.