HYDERABAD : Patancheru BRS MLA Gudem Mahipal Reddy on Tuesday appeared before the Enforce Directorate (ED) in connection with alleged mining scam and money laundering case.
According to agency sources, the legislator was questioned for about two hours on documents seized during the recent raids. The documents, which were allegedly in benami names, were reportedly related to illegal mining and money laundering.
The MLA, while leaving the ED office after the inquiry, said that the agency officials have recorded his statement.
The ED officials reportedly questioned Mahipal about the real estate companies in which he and his brother Madhusudhan Reddy allegedly dumped money.
The ED filed a case against Mahipal and Madhusudhan based on a FIR registered by Patancheru police, alleging that Rs 300 crore worth mining was carried out illegally by the Gudem brothers, evading a Rs 39 crore royalty that is due to the government. The money was allegedly diverted to other benami firms and other businesses.
On June 20, the ED officials conducted searches at 10 locations in connection with a money laundering case filed against Patancheru-based Santhosh Sand and Granite Supply, which is owned by the MLA, under the provisions of the Prevention of Money Laundering Act, 2002.