VIJAYAWADA: The Enforcement Directorate (ED) has provisionally attached assets worth Rs 22.10 crore belonging to firms under the control of former MLA and TDP leader JC Prabhakar Reddy, his close associate and a civil contractor, C Gopal Reddy and their family members in connection to the alleged BS-IV vehicle scam. Further, the ED is investigating the case under the Prevention of Money Laundering Act (PMLA) and will also probe the role of automotive company Ashok Leyland in the alleged scam.
In a statement issued on Wednesday, the Central agency said as part of the probe, it has provisionally attached properties in the names of firms associated with Diwakar Road Lines and Jatadhara Industries Pvt Ltd (controlled by Prabhakar Reddy), C Gopal Reddy and Co (belonging to Gopal Reddy) and their family members.
The case dates back to 2017 and pertains to the then Tadipatri MLA Prabhakar Reddy and Chavva Gopal Reddy who allegedly created fake invoices and insurances of BS-III vehicles as BS-IV compliant ones and registered them in Tamil Nadu, Nagaland and Karnataka. The duo then allegedly brought these vehicles to Andhra Pradesh and sold them with fabricated documents in other States through Jatadhara Industries and Chavva Gopal Reddy & Sons.
Elaborating on the case, the ED said sale of non-BS-IV compliant vehicles by any manufacturer or dealer in India was prohibited from April 1, 2017.According to the Supreme Court’s March 29, 2017 orders, authorities were also prohibited from registering such vehicles from April 1, 2017. “However, Jatadhara Industries Pvt Ltd (JIPL) and C Gopal Reddy and Co in contravention to the SC orders purchased BS-III vehicles from Ashok Leyland at a discount and fraudulently registered the same as BS-IV vehicles by fabricating the invoice copies. Investigation revealed that some of the registrations were done in Nagaland, Karnataka and AP,” the ED said.
It has also gathered evidences in the form of fabricated invoices from RTO authorities in Nagaland and original invoices issued by Ashok Leyland as scrap for the same vehicles and established the crime. “The crime proceeds generated by owning, plying and/or selling these vehicles have been quantified as Rs 38.36 crore,” the ED said.
As a result of the investigation and searches, movable properties worth Rs 6.31 crore, including bank balances, cash, jewellery and receivables, as well as 68 immovable properties valued at Rs 15.79 crore, belonging to Prabhakar Reddy, Gopal Reddy and their family members, have been attached. “Further investigation, including the role of Ashok Leyland in the entire scam, is in progress,” the ED statement said.
Based on the report submitted by the State transport department, the ED, too, initiated a probe into BS-IV vehicle scam and conducted searches at the residences of Prabhakar Reddy and Gopal Reddy. The transport department has also recovered 90 out of the 154 BS-III vehicles sold.