HYDERABAD: The Directorate of Enforcement (ED), Hyderabad Zonal Office, conducted searches under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at eight locations in Hyderabad, Jaipur and Coimbatore on May 26.
The searches were carried out at the offices of M/s GCKC Projects and Works Pvt. Ltd., M/s Prathima Infrastructure Ltd. and M/s Turnkey Enterprises Pvt. Ltd., along with the residences of Boinipally Srinivas Rao, Ashok Kumar and VG Venkata Reddy in Hyderabad and Jaipur. The ED also searched a farmhouse belonging to Boinipally Srinivas Rao.
The investigation was initiated based on an FIR registered by the CIU, Anti-Corruption Bureau, NTR district, Vijayawada, Andhra Pradesh, against VG Venkata Reddy, the then Director of Mines and Geology, M/s Jaiprakash Power Ventures Ltd. (JPVL), M/s Prathima Infrastructure Ltd. and M/s GCKC Projects and Works Pvt. Ltd. The FIR pertains to alleged irregularities in sand mining operations, including illegal mining and violations of tender conditions and agreements.
According to the ED, the Supreme Court had constituted District Level Sand Committees (DSLCs) to inspect sand reaches and report instances of illegal mining. Investigations revealed that M/s JPVL, M/s GCKC Projects and Works Pvt. Ltd. and M/s Prathima Infrastructure Ltd. had allegedly excavated sand beyond the permitted depth and from areas outside the approved mining zones.
Following the inspections, the Office of the Director of Mines and Geology issued several show-cause notices to the companies concerned. Subsequently, demand notices amounting to Rs 2,407.70 crore were raised against the three entities for the alleged illegal excavations.
During the searches, the ED seized Indian currency worth Rs 1.53 crore, foreign currency amounting to USD 1,800, silver bullion valued at Rs 1.29 crore, several digital devices and incriminating documents. The documents reportedly contain details of movable and immovable properties held in the names of the accused persons and their family members.