Thursday, July 25, 2024

BRS MLA linked to Rs 300 cr money laundering scandal: ED

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The Directorate of Enforcement (ED), Hyderabad Zonal Office, executed search operations at 10 locations on Thursday in and around Hyderabad as part of an ongoing investigation into a money laundering case involving M/s Santhosh Sand and Granite Supply, Patancheru. The raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, targeting premises associated with the firm’s proprietor, Gudem Madhusudan Reddy, BRS MLA Gudem Mahipal Reddy, and others.
ED’s investigation was prompted by FIRs filed by the Telangana Police against M/s Santhosh Sand & Granite Supply, alleging unauthorised excavation and transportation of significant quantities of building stone and road metal. The firm stands accused of illegally excavating 11,98,743 cubic meters within its permitted quarry area and an additional 10,11,672 cubic meters on encroached government land measuring 4.37 hectares. This activity allegedly resulted in illicit proceeds amounting to approximately Rs. 300 crore, while also evading royalty payments totaling Rs. 39.08 crore owed to the government.
According to ED officials, proceeds from the illegal sales were deliberately concealed from banking transactions and accounting records, with suspicions that transactions were conducted primarily in cash. The investigation further uncovered evidence suggesting that the laundered proceeds were reinvested in real estate and other undisclosed activities.
During searches, ED seized unaccounted cash amounting to Rs. 19 lakh, alongside numerous property documents registered under unrelated individuals suspected to be fronts for the accused. Mobile phones containing evidence related to cash transactions were also confiscated, along with recovered bank locker keys. Authorities anticipate that examination of the bank lockers will yield additional incriminating evidence.
The ED confirmed that investigations are ongoing to uncover further details and apprehend any additional persons involved in the alleged money laundering scheme

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