New Delhi: The Enforcement Directorate (ED) on Tuesday said it has seized “unaccounted” cash worth Rs 31 lakh during searches at multiple locations in Karnataka and Andhra Pradesh in connection with a money laundering case.
The case under provisions of the Prevention of Money Laundering Act (PMLA), 2002, was registered against two individuals identified as Surya Narayana Reddy and Bharath Reddy. It stems from an FIR registered in Karnataka’s Bellary and the searches were carried out on February 10, the agency said in a statement.
It said the agency found “incriminating evidence” indicating that Bharath Reddy allegedly mobilised approximately Rs 42 crore cash over a few months just before the assembly elections and utilised the funds for “unlawful transactions”.
The search proceedings conducted by the ED found a “network of incriminating documents”, business records and details of immovable and movable properties. Crucial evidence was seized along with “unaccounted cash” of Rs 31 lakh, establishing the involvement of Bharath Reddy, his assistant Rathna Babu and others in mobilising substantial amounts of cash for illegal payments, the ED said.
The ED investigation also allegedly found that Sharath Reddy, who is the brother of Bharath Reddy, made undisclosed investments in foreign-based companies. The accused individuals were allegedly found to have invested in properties under “benami names and obtained suspicious loans from relatives, utilising their bank accounts without their knowledge”.
Further investigation is in progress, the ED said.
