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The Directorate of Enforcement (ED), Hyderabad Zonal Office, conducted search operations on June 20, 2024, at 10 locations in and around Hyderabad. The raids were part of a money laundering investigation against M/s Santhosh Sand & Granite Supply, Patancheru, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The searches targeted the premises of Gudem Madhusudan Reddy, the proprietor of the firm, BRS MLA Gudem Mahipal Reddy, and others.
The ED initiated the investigation based on FIRs registered by the Telangana Police against M/s Santhosh Sand & Granite Supply, a proprietary concern of Gudem Madhusudan Reddy. The firm was found to have illegally excavated and transported an excess quantity of 11,98,743 CBM of building stone and road metal within the permitted quarry lease area, and 10,11,672 CBM of material from encroached government land measuring 4.37 hectares. Through these illegal activities, the accused amassed approximately Rs. 300 crore and evaded Rs. 39.08 crore in royalties due to the government.
The ED investigation revealed that the proceeds from the illegal excavation were not reported in banking transactions or accounting records, with the transactions suspected to have been conducted in cash. These illicit proceeds were laundered by the accused and invested in real estate and other activities.
The search operations led to the seizure of unaccounted cash amounting to Rs. 19 lakh, along with numerous property documents in the names of unrelated persons suspected to be benamis of the accused. Additionally, mobile phones containing evidence of cash dealings were seized, and bank locker keys were recovered. The examination of these bank lockers is expected to uncover further incriminating evidence.
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