ED: Madhusudhan Reddy laundered Rs 300 crores by investing in real estate

Hyderabad: The sleuths of the Enforcement Directorate have concluded that BRS Patancheru MLA Gudem Mahipal Reddy’s brother Madhusudhan Reddy laundered the proceeds of the crime, which were mostly in the form of cash, by investing them in real estate and other activities.

They have also determined that the quantum of scam committed stood at Rs 300 crores.

This comes after the raids carried out by the ED across 10 locations on Thursday (June 20).

Search operations led to the seizure of unaccounted cash of Rs 19 lakhs along with a large number of property documents in the names of unrelated persons who are suspected to be benamis of the 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.

The ED investigation revealed that sale proceeds of illegally excavated material were deliberately not reported in banking transactions and books of accounts and that the transactions were suspected to have been carried out in cash.

The searches were conducted at the premises of the proprietor of the firm Gudem Madhusudan Reddy, BRS MLA Gudem Mahipal Reddy and others.

The ED initiated an investigation on the basis of FIRs registered by the Telangana Police against Santhosh Sand and Granite Supply, a proprietary concern of Gudem Madhusudan Reddy. 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 Ha).

In the process, the accused illegally amassed around Rs 300 crores by sale of illegally excavated material and also evaded a royalty amount of Rs 39.08 crores due to the government.

Further investigation is under progress.