Crime Top News

ED Raids against BRS Patancheru MLA: Recover 19 Lakh case, Amassed 300 crores

Ed Raids On Brs Mla

Hyderabad: Enforcement Directorate (ED), has raids against Gudem Madhusudan Reddy, BRS MLA Gudem Mahipal Reddy and others led to recovery of 19 laksh and number of property documents in the names of unrelated persons who are suspected to be benamis of accused persons. Enforcement Directorate (ED) conducted raids against Patancheru Bharat Rashtra Samithi(BRS) Member of Legislative Assembly (MLA) Gudem Mahipal Reddy and his brother Gudem Madhusudhan Reddy in connection with the illegal mining business on Thursday.

The agency 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.

The law enforcement agency, ED, jumped into action after the case filed by the Patancheru police against M/s Santhosh Sand & Granite Supply, a proprietary concern of Gudem Madhusudan Reddy.Going further into the details, After allegations of illegal mining surfaced over Madhusudhan Reddy, Sangareddy Collector Valluru Kranthi ordered an inquiry by a task force committee under the chairmanship of Sangareddy RDO Ravindar Reddy. Subsequently Ravindar Redd lodged a formal complaint with Patancheru police of Cyberabad police. Based on which, Gudem Madhusudhan Reddy was arrested.

Amassed 300 crore through illegal mining

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 investigation 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.

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. Further investigation is under progress.