Rs 300 Cr mining scam: How advocate V Ravikrishna's complaint prompted ED to raid BRS Patancheru MLA Gudem Mahipal Reddy

Hyderabad: Enforcement Directorate sleuths raided the residence of BRS Patancheru MLA Gudem Mahipal Reddy and his brothers in the alleged Rs 300 crore mining scam.

The raids follow a formal complaint filed by Advocate V Ravikrishna alleging Rs 300 crore illegal mining scam in Lakdaram Village, Patancheru Mandal, Sangareddy district. He named local BRS MLA Gudem Mahipal Reddy and his family, Siddipet MLA T. Harish Rao and Dubbaka K. Prabhakar Reddy.

What is the scam?

MLA Gudem Mahipal Reddy and his brothers are facing allegations of carrying out illegal mining and crusher business in Survey No. 738 of Lakdaram Village. There are also allegations that 36 mining and crusher companies are operating in the Patancheru constituency by violating the laws and fundamental rights of the villagers.

On February 9. 2024, a formal complaint was filed before Tahsildar, Patancheru Mandal. Later, an SIT team was formed to probe the allegations.

“Five teams surveyed the quarries in Lakdaram, Chitkul, and Rudraram villages. As per their report, the quarry in the name of Santhosh Sand & Granite Supply located at Survey.No. 738 of Lakdaram village have encroached and resorted to mining activities in 4.37 Hect/10.32 Acres in excess area. I had made several appeals to the departments to take possession of unallotted government land (excess land) immediately and initiate appropriate action against the quarry for unauthorized encroachment. I requested the police to book a criminal case against the quarry management which encroached government land unauthorizedly,” said advocate V Ravikrishna in his complaint.

Allegation against Gudem Mahipal Reddy’s brothers

Gudem Madhusudhan Reddy is the brother of Gudem Mahipal Reddy who was elected Member of the Legislative Assembly from Patancheru-40 Constituency in 2014, 2018, and 2024. There are allegations that he has been involved in illegal mining and crusher business on government-assigned lands for many years. Despite closure orders by the TS PCB on March 10, 2023, against Santhosh Sand and Granite Supply Company, he continued the illegal mining on the government-assigned land in Survey No. 738, of Lakdaram Village by misusing his position as a Member of the Legislative Assembly.

Earlier, Patancheru police booked Madhusudhan Reddy (Gudem’s brother) for alleged illegal mining activities conducted through his firm Santosh Granite Mining.

Appeal made by the complaint

Advocate V Ravikrishna filed several complaints and appealed to the agencies to investigate the role of the Patancheru MLA Gudem Mahipal Reddy; the then District Minister and present Siddipet MLA T. Harish Rao; and then MP and present Dubbaka MLA Kotta Prabhakar Reddy.

As per the information available, all 3 are partners. Gudem Mahipal Reddy is a 50% partner in GMR Enterprises. He has mentioned it in the election affidavit. Santhosh Sand and Granite Supply is the branch of GMR Enterprises as per the data available in the public domain.

Also, no ordinary person can encroach the valuable government land to an extent of 10 acres and carry out excavation activity for the past 1 year despite closure orders given by the TS PCB.

"It is pertinent to note that this just happened in one company. They own other mining companies under the name and style of GVR Enterprises, GMR Enterprises, GMR Minerals, etc. I suspect they have committed Rs 1000 crore fraud. As per the media reports, Gudem Mahipal Reddy is trying to switch sides from BRS to Congress to come out of the cases and to save ill-earned money. Therefore, I request your kind authority to conduct a detailed investigation initiate appropriate action, and recover all the ill-earned money that belongs to the exchequer in the interest of the public at large. Please go through the detailed complaint letters submitted to various authorities and RCD submitted by the Patancheru Police for more information in this regard,” the complainant said.

In an official confirmation, the Enforcement Directorate informed the complainant that the agency has received inputs from several sources, including the information provided by him, which is under examination. Necessary action as required under law will be taken in due course, the ED said.