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ED quizzes BRS Patancheru MLA Gudem Mahipal Reddy

BRS MLA Gudem Mahipal Reddy

Hyderabad: BRS Patancheru MLA Gudem Mahipal Reddy statement recorded by the Enforcement Directorate on Tuesday. The premier investigation agency which is probing the illegal mining scam and allegedly amassed around Rs. 300 Crore by sale of illegally excavated material. The ED is looking into money laundering allegations of the scam.

After the completion of the statement recording Gudem Mahipal reddy said, “They have recorded my statement” and left the ED office.

Earlier, the Enforcement Directorate (ED), conducted raids at ten locations in and around Hyderabad in a money laundering case being investigated against M/s Santhosh Sand and Granite Supply, Patancheru under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Searches were conducted at the premises of the proprietor of the firm Gudem Madhusudan Reddy, BRS MLA Gudem Mahipal Reddy and others.

Search operations led to the seizure of unaccounted cash of Rs.19 Lakh along with a large number of property documents in the names of unrelated persons who are suspected to be benamis of accused persons. Mobile phones containing evidence related to cash dealings were also seized. Bank locker keys were also recovered and examination of the bank lockers is expected to reveal further incriminating evidence. The Enforcement Directorate officially reportedly questioned Mahipal Reddy about the property documents and trial of proceeds of crime in the form of cash.

Investigation revealed that the accused firm was found to have excavated and transported excess quantity of 11,98,743 CBM of building stone and road metal within the quarry lease permitted area and 10,11,672 CBM of material beyond the permitted area (on encroached Government land admeasuring 4.37 Ha). In the process, the accused illegally amassed around Rs. 300 Crore by sale of illegally excavated material and also evaded royalty amount of Rs. 39.08 Crore due to the Government.

Further probe revealed that sale proceeds of illegally excavated material were deliberately not reported in banking transactions and books of accounts and that the transactions were suspected to have been carried out in cash. ED investigation revealed that proceeds of crime in the form of cash were laundered by the accused and were invested in real estate and other activities, said ED in an official statement. Further investigation is under progress.