ED seizes cash, property documents in Hyderabad money laundering probe

The Enforcement Directorate (ED) conducted searches in Hyderabad related to a money laundering investigation involving M/s Santhosh Sand and Granite Supply.
Image used for representational purpose
Image used for representational purposeFile Photo

HYDERABAD : Releasing details of searches on the properties belonging to Gudem Madhusudan Reddy, BRS MLA Gudem Mahipal Reddy and others on Thursday, the Hyderabad unit of the Enforcement Directorate (ED) on Friday said that it seized cash, property documents, evidence of cash deals as well as keys to bank lockers.

“Search operations led to the seizure of unaccounted cash of Rs 19 lakh along with a large number of property documents in the names of unrelated persons who are suspected to be benamis of accused persons. Mobile phones containing evidence related to cash dealings were also seized. Bank locker keys were also recovered and examination of the bank lockers is expected to reveal further incriminating evidence,” a release from the ED said.

The ED had conducted search operations on June 20 at 10 locations in and around Hyderabad in a money laundering case being investigated against M/s Santhosh Sand and Granite Supply, Patancheru under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Searches were conducted at the premises of Madhusudan Reddy, the proprietor of the firm, the BRS and others.

The ED said that it initiated investigation based on FIRs registered by Telangana Police against Santhosh Sand and Granite Supply. “The accused firm was found to have excavated and transported an excess quantity of 11,98,743 CBM of building stone and road metal within the quarry lease permitted area and 10,11,672 CBM of material beyond the permitted area on encroached government land admeasuring 4.37 hectares. In the process, the accused illegally amassed around Rs 300 crore and also evaded royalty amount of Rs 39.08 crore due to the government,” the ED said.

It said that the investigation revealed that sale proceeds of illegally excavated material were deliberately not reported in banking transactions.

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