Hyderabad: Difficulties for the politically marooned YSR Congress chief Jagan Reddy are likely to compound even further as he might soon face Enforcement Directorate (ED) inquiry under the Prevention of Money Laundering Act 2002.

Without providing any respite to Reddy, the ED is all set to register a fresh case against Jagan under the charges of money laundering. The CBI on Thursday had conducted searches at the MP’s residence after the investigating agency had registered an FIR against him.

The ED can also seize his illegal assets under the Prevention of Money Laundering Act. To register a case against Jagan Reddy under money laundering, the ED does not need to seek permission from the High Court or government.

The ED can independently file a money laundering case under the Prevention of Corruption Act. After CBI conducted raids on premises of Jagan, the ED has asked for a copy of FIR from the investigating agency.

According to a senior official, once the FIR copy is received, money laundering case will be registered against Jagan Reddy.

Notably, assets worth Rs 120 crore of former Chief Minister of Jharkhand Madhu Koda were seized under the same law.