KARIMNAGAR: The Enforcement Directorate (ED) has issued notice to Swetha Granites, a company being run by the family of BC Welfare Minister Gangula Kamalakar for alleged violation of FEMA (Foreign Exchange Management Act) regulations.
The ED officials reportedly identified irregularities in exporting granite to China by Swetha Granites. According to the authorities, the company paid only Rs 3 crore as tax to the government and still owes Rs 50 crore.
In November last year, ED and Income Tax (IT) department officials conducted three-day raids at the granite companies in Kothapally Mandal in Karimnagar district. The ED also searched the house of Kamalakar.
The officials visited Kakinada, Krishnapatnam, Chennai and Visakhapatnam ports and, during the inspection, it was found that the size of the granite material mentioned to the mines department was different from the actual size of the export. According to sources, about 7.6 lakh cubic metres of granite was illegally exported to China.
Meanwhile, Kamalakar denied receiving any notices from the ED and violating FEMA. He claimed 100 per cent transparency in the conduct of the granite business by his family members. “Notices are part of a normal process. I am a law-abiding citizen and my family will cooperate with the ED,” said the minister.