T&T Law managing partner Rohit Tandon has been arrested by the enforcement directorate (ED) yesterday under the Prevention of Money Laundering Act (PMLA) and is to face a Delhi court about his continuing custody, reported PTI and others.

As previous reports had suggested, the ED alleges that Tandon was a key player in converting Rs 60 crore of demonetised cash of Kolkata-based businessman Parasmal Lodha.

A Delhi-based branch manager of Kotak Mahindra Bank, Ashishh Kumar, had also been arrested yesterday, with the authorities alleging that Tandon had given Kumar Rs 51 crores.

Kumar, who managed the Kasturba Gandhi Marg branch of the bank, had then allegedly issued Rs 38 crores of forged drafts, in an apparent money laundering bid, and was paid Rs 13 crores for his efforts.

The investigation around Tandon had started earlier this year, after income tax authorities raided his office and residence following the tax self-declaration deadline had elapsed. In October, Tandon then declared Rs 125 crore in unaccounted-for assets and income to the tax man.

Less than 2 months later, police and tax officials then raided Tandon’s office and residence again, allegedly recovering Rs 13.6 crores in cash of old and new currency notes.