The much-hyped Sheep Distribution Scheme, launched under the previous Bharat Rashtra Samithi (BRS) government and overseen by then Animal Husbandry Minister Talasani Srinivas Yadav, has erupted into a massive scandal. The Enforcement Directorate (ED) has uncovered financial irregularities amounting to Rs 1,000 crore. Originally intended to benefit the Golla and Kuruma communities in Telangana, the scheme is now under intense scrutiny for the gross misuse of public funds, all under the watch of former Chief Minister K. Chandrashekar Rao.
The ED’s preliminary findings reveal that government money meant for genuine beneficiaries was brazenly diverted to private individuals’ bank accounts. In its investigation, the ED discovered over 200 dummy bank accounts, through which these illegal transactions were routed. Raids conducted on July 30 in Hyderabad led to the seizure of empty cheque books, passbooks, debit cards, 31 mobile phones, and more than 20 SIM cards. Shockingly, many of these accounts and phones were also linked to online betting app transactions, suggesting potential money laundering activities.
The ED stated: “ED, Hyderabad has conducted search operations on 30.07.2025 at eight locations in Hyderabad at the premises of G. Kalyan Kumar (OSD to the then Animal Husbandry Minister Talasani Srinivas Yadav) as well as certain beneficiaries and middlemen under the provisions of the PMLA, 2002 in connection with financial irregularities in the implementation of ‘Sheep Rearing Development Scheme (SRDS)’ in the state of Telangana. During the search operations, various incriminating documents and digital devices were found and seized.”
ED, Hyderabad has conducted search operations on 30.07.2025 at eight locations in Hyderabad at the premises of G Kalyan Kumar (OSD to the then Animal Husbandry minister Thalasani Srinivasa Yadav) as well as certain beneficiaries and middlemen under the provisions of the PMLA,…
— ED (@dir_ed) August 1, 2025
Rs 254 Cr Misused in Just 7 Districts: CAG
Earlier, a March 2021 report by the Comptroller and Auditor General (CAG) had flagged serious lapses in the implementation of the scheme. Though the CAG examined just 7 districts, including Karimnagar, Mahbubnagar, Nalgonda, Nizamabad, Warangal, Adilabad, and Sangareddy, it noted a staggering Rs 253.93 crore loss to the exchequer. Extrapolating these findings to all 33 districts, the ED has now estimated the total scam at Rs 1,000 crore.
Along with Animal Husbandry Minister Srinivas Yadav Garu launched the 2nd phase of sheep distribution program in Siricilla
In the 1st phase more than 60 lakh sheep were distributed. Telangana is focused on heralding Pink, Blue, Green & White revolutions to stir up rural economy pic.twitter.com/sFv5PwG6JN
— KTR (@KTRBRS) July 2, 2018
Records Burned, Evidence Tampered: ACB
Adding to the gravity, the Anti-Corruption Bureau (ACB) had already registered FIRs in connection with the scheme. Following the change in government, a complaint was filed alleging that G. Kalyan Kumar, Officer on Special Duty (OSD) to the then Animal Husbandry Minister Talasani Srinivas Yadav, broke into department offices, tampered with records, and even burned official files to destroy evidence.
One sheep trader lodged a separate complaint stating that Rs 2.1 crore of government funds, which were supposed to be transferred directly to beneficiaries’ accounts, were instead diverted to private accounts. Following this, the ACB registered a fresh case and ramped up its investigation, especially after allegations surfaced against Assistant Directors of the Animal Husbandry Department for their role in enabling these transactions.
Money Paid Before Scheme Launch, Fake Traders Exposed
The ED’s investigation further revealed that payments were made even before the official launch of the scheme, and that funds were released to individuals not involved in sheep trade at all. In many cases, sheep were shown as delivered in records, without any actual delivery, indicating the use of fake beneficiaries and bogus bills.
