A security personnel walks past a gate of the office of Enforcement Directorate.
Credit: Reuters Photo
Hyderabad: The Enforcement Directorate (ED) has provisionally attached several immovable and movable properties amounting to Rs 80.05 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with an ongoing investigation in a case related to illegal mining by a granite company linked to a BRS MLA who had last year joined Congress in Telangana.
ED initiated investigation into alleged illegal mining by M/s. Santosh Sand and Granite Supply belonging to BRS MLA Gudem Mahipal Reddy's brother Gudem Madhusudhan Reddy on the basis of FIRs registered by Patancheru Police.
It was alleged that the M/s Santhosh Sand & Granite Supply represented by its Proprietor Gudem Madhusudhan Reddy and others have cheated the government by carrying out excess mining in the assigned quarry area and in unassigned government land, thereby causing huge revenue loss to the government to the tune of Rs 39.08 crore towards royalty payable and by wrongfully enriching themselves to the tune of Rs. 300 crore from the illegal mining carried out by them.
During the course of investigation, searches were conducted by the ED which, inter alia, resulted in the seizure of numerous original property documents from the possession of Gudem Madhusudhan Reddy, Proprietor of M/s Santhosh Sand & Granite Supply. Further investigation revealed that though these properties were in the names of different persons, the beneficial owner of these properties is Madhusudhan Reddy. Examination of the purported owners of these properties revealed that they were benamis of Gudem Madhusudhan Reddy.
It was further revealed that the mining license was granted by the government to M/s Santhosh Sand & Granite Supply and they in turn, sub contracted the same to M/s. GVR Enterprises, a partnership firm of Gudem Madhusudhan Reddy and G Vikram Reddy.
This sub contracting was not permitted in terms of the lease and moreover no permission was taken from the government.
ED investigation also revealed that the illegally mined products were majorly sold in cash and the Proceeds of Crime (POC) generated in this manner were further invested in properties, mostly in the names of benamis.
Accordingly, 81 such properties valued at Rs 78.93 crore have been provisionally attached during investigation.
Further, some amounts were also due to M/s GVR Enterprises from the purchasers of illegally mined material and these amounts also represent POC and accordingly fixed deposits of Rs. 1.12 Crore in the names of these entities have also been attached. Further investigation is under progress.