After the cash seizure, the ED asked the businessman to join the probe, sources said, declining to divulge further details.
The ED has started searching the businessman’s house on Friday after the agent conducted a day-long raid at over 35 locations in Punjab, Delhi and Andhra Pradesh.
The raids were conducted after the interrogation of accused Sameer Mahendru in custody by the central agency, during which the ED found out that Punjab and Andhra Pradesh had links in the case.
Mahendru was later arrested by the ED. It was the second arrest in the excise policy scam and the first by the ED.
There are allegations that Arun Ramchandra Pillai, a resident of Kokapet in Hyderabad, collected undue pecuniary benefit from Mahendru to further send it to accused official Vijay Nair.
Now, the investigative agency is collecting documentary and digital evidence to trace money laundering. ED is trying to make a watertight case by trying to expose the layering of laundered money.
Friday’s raids were the third in connection with the excise tax scam. So far ED has raided about 100 places.