VIJAYAWADA: Sleuths of the Anti-Corruption Bureau (ACB) on Wednesday registered an FIR against former Director of Mines and Geology Department G Venkat Reddy for allegedly abusing his official position and allowing private entities to misappropriate government funds. The ACB said the wrongful loss caused to the government that resulted in a breach of trust and misappropriation of property was worth approximately Rs 2,566 crore.
Additionally, ACB sleuths conducted searches at the residences of Venkat Reddy and a few others on Thursday.
The case was registered under Sections 7, 9, 10, 12 and 13 (1)(a) of Prevention of Corruption (Amendment) Act, 2018, and Section 406, 409, 120B of IPC and Section 4 (1), 4 (1) (A) read with 21 of Mines and Mineral (Development & Regulation) Act, 1957.
According to an official statement from the ACB, the Commissioner for Mines and Geology submitted a report to the Principal Secretary, Industries and Commerce, (Mines) Department in July this year, stating that Venkat Reddy had committed violations in tenders/ agreements, operations of sand mining, and even orders of the National Green Tribunal (NGT) and the Supreme Court, causing hefty losses to the State exchequer and wrongful gains to the private parties. The report was forwarded to the ACB for further action.
Subsequently, the investigative agency obtained prior permission for inquiry under Section 17A of the Prevention of Corruption (Amendment) Act and conducted a regular enquiry. The sleuths visited the Mines and Geology Department offices and sand reaches in all districts across the State. They collected documents and questioned the officials and witnesses.
According to the official statement, prima facie inquiry disclosed that Venkat Reddy, during his tenure as the Mines and Geology Director and in-charge managing director for the State Mineral Development Corporation (APMDC), conspired with M/s JPVL, M/s GCKC Projects & Works and M/s Prathima Infrastructures and others and abused his official position to gain undue advantage by fraudulently allowing the companies to misappropriate government funds.
‘Property worth Rs 2,566 crore swindled’
Further, he allegedly conspired with JPVL and other companies, and released bank guarantees to the tune of Rs 120 crore under his control, in violation of prescribed procedure, resulting in criminal breach of trust and misappropriation of government money, thereby causing wrongful loss to the government exchequer.
“This has resulted in wrongful gain to M/s JPVL, M/s GCKC Projects & Works Pvt. Ltd & M/s Prathima Infrastructures Pvt. Ltd and the other accused. The approximate wrongful loss caused to the government that resulted in a breach of trust and misappropriation of property is worth approximately Rs 2,566 crore,” the statement read. The ACB added the DLSC reports disclosed that the private agencies had undertaken mining activities, violating lease boundaries and permitted depth and without environmental clearances.
Official accused of releasing Rs 120-cr bank guarantees
Venkat Reddy allegedly conspired with JPVL and other companies, and released bank guarantees to the tune of Rs 120 crore under his control, in violation of prescribed procedure, resulting in misappropriation of government money and loss to the government exchequer