ED attaches ₹80 crore assets in illegal mining case involving MLA Mahipal Reddy’s brother Madhu Shan Reddy
HYDERABAD: The Enforcement Directorate (ED) has provisionally attached immovable and movable assets worth ₹80.05 crore in a money laundering probe linked to alleged illegal mining by Santhosh Sand & Granite Supply, a business connected to Gudem Madhusudan Reddy, brother of Patancheru MLA Gudem Mahipal Reddy.
ED traces benami holdings
The agency initiated the investigation based on FIRs registered by the Patancheru police, which alleged that the firm, represented by proprietor Gudem Madhusudan Reddy, carried out excess mining in its assigned quarry and also extracted material from unassigned government land. According to the FIRs, this caused a revenue loss of ₹39.08 crore towards royalty and allowed the accused to allegedly earn nearly ₹300 crore through unauthorised mining.
Searches conducted by the ED led to the seizure of several original property documents from Madhusudan Reddy. The agency said that although the properties were held in the names of different individuals, they were benami assets, with Reddy identified as the beneficial owner.
Sub-contracting violation and cash-based sales
Investigators found that the mining licence granted to Santhosh Sand & Granite Supply had been informally sub-contracted to GVR Enterprises, a partnership firm of Madhusudan Reddy and G Vikram Reddy, without government approval. Such sub-contracting is not permitted under the terms of the lease.
The ED stated that illegally mined material was largely sold in cash, and the proceeds were invested in properties purchased in benami names. As part of the investigation, 81 properties valued at ₹78.93 crore were attached.
Fixed deposits also frozen
The agency added that certain amounts remained due to GVR Enterprises from purchasers of illegally mined material. These dues were categorised as proceeds of crime, leading to the attachment of fixed deposits worth ₹1.12 crore.
Further investigation is under way.
