Hyderabad: Officials of the Directorate of Enforcement (ED), Hyderabad zonal office, conducted search operations on at 10 locations in and around the city in a money laundering case that being investigated against M/s Santhosh sand and granite supply, Patancheru, under provisions of the Prevention of Money Laundering Act (PMLA), 2002. ED officials also conducted searches at a BRS MLA’s house in the caese.
According to officials, searches were conducted at the premises of proprietor of the firm namely Gudem Madhusudan Reddy, BRS MLA Gudem Mahipal Reddy and others. ED officials initiated investigation on the basis of FIRs registered by the Telangana Police against M/s Santhosh sand and granites supply, a proprietary concern of Gudem Madhusudan Reddy.
The accused firm was reportedly 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,” said ED officials.
The ED 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.
Further ED investigation revealed that proceeds of the crime in the form of cash were laundered by the accused and were invested in real estate and other activities. Search operations led to the seizure of unaccounted cash of Rs.19 Lakh along with 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, said the ED. Bank locker keys were also recovered and examination of the bank lockers is expected to reveal further incriminating evidence, stated ED officials.
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