Granite companies associated with TRS MLA Gangula Kamalakar have transactions with Chinese entity named in Panama leaks

By Coreena Suares  Published on  11 Nov 2022 9:00 AM GMT
Granite companies associated with TRS MLA Gangula Kamalakar have transactions with Chinese entity named in Panama leaks

Hyderabad: In a revelation of sorts, Enforcement Directorate raids against Karimnagar and Hyderabad based granite companies unfolded an unholy link to a Chinese entity whose name has appeared in 'Panama leaks'. The federal agency has seized Rs 1.08 Crore of hawala money from these granite companies and also confiscated voluminous granite dispatch data of 10 years from the quarries. Pertinent to note that ED held raids against TRS Karimnagar MLA Kamalakar's residence and premises. Mr Kamalakar is also the Minister for Backward Classes Welfare, Food and Civil Supplies in the Telangana cabinet,

It is to recall that sleuths of Enforcement Directorate conducted searches at offices and residential premise Karimnagar and Hyderabad based M/s. Swetha Granites, Swetha Agencies, Sri Venkateshwara Granites Private Limited, M/s. PSR Granites Private Limited, M/s. Arvind Granites, M/s Giriraj Shipping Agencies Private Limited and their related entities on 9th and 10th November 2022. The agency took up investigation under FEMA Violations.

To note, Shwetha Granite Export Pvt Limited and Aravinda Vyas Granites Pvt Ltd, two companies allegedly associated with him TRS MLA Gangula Kamalakar-

The companies in question are engaged in exporting of rough granites blocks to China, Hong Kong S.A.R, China and other countries. During the course of enquiries, it was found that exported quantity was more than the quantity on which 'royalty' was paid to the Indian government, which means there was 'under reporting' of quantity while exporting. This falls under FEMA violation Act, since the probe indicates a large scale evasion of 'Seigniorage fee' on granite blocks.

Investigation found that, In many instances, the export proceeds are not realized in the declared bank accounts, thereby, indicating that the export proceeds are received through

other than banking channels.

ED stumbled upon a mine

Following the searches, ED teams also found multiple benami bank accounts held in the name of employees of granite exporters. These accounts reportedly received 'cash' against the illegal granite exports. This explains the quantity of exports against the royalty paid.

"Search action also led to detection of money being routed back from Chinese entities into the Indian entities in the form of hand loans without documents. These Chinese entities are owned by Li Wenhuo, whose name appeared in Panama leaks" ED Said in the statement.

It is to recall that, ED began Investigation on illegal granite mining and FEMA violations basis on Vigilance & Enforcement Dept of State Government reports. These documents concluded that, a large scale evasion of 'Seigniorage fee' on granite blocks transported from the quarry lease areas of Karimnagar District to the Sea Ports by Railways was detected and demands for the evaded royalty were raised but not paid by the exporters.

MLA Kamalakar has been engaged in granite firms based out in Karimnagar for over 3 decades. A case was filed against him in 2012 alleging the exchequer lost some ₹ 750 crore due to his "illegal" operations. What followed was a complaint from BJP Telangana State president and MP Bandi Sanjay in November last year.

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