The Enforcement Directorate Chennai branch late last night asserted verified PWD contractor Sekar Reddy in an alleged illegal money exchange case.
Reddy, who was arrested by CBI last year in December in connection with holding huge amounts of unaccounted income worth rupees 130 crore, has been taken into custody again.
After 11 hours inquiry, Reddy has been sent to custody till March 28.
Reddy's arrest led to investigators raiding former Chief Secretary of T.N. Rama Mohana Rao and his son Vivek Pappisetty.
According to reports, an income tax official from the investigation wing said the department is still probing Rao and Pappisetty over amassing unaccounted income.
Sekar Reddy was released on bail in the CBI case recently.