Published Aug 11, 2026 | 5:56 PM ⚊ Updated Aug 11, 2026 | 5:56 PM
Enforcement Directorate.
Synopsis: The ED conducted raids at properties linked to former YSRCP MLA Malla Vijaya Prasad and his business associates over an alleged Rs 2,000-crore financial fraud. The agency said their real estate company collected money from investors by promising land in Visakhapatnam, diverted funds, and falsified records. Cash, documents, digital devices and vehicles were seized.
The Enforcement Directorate (ED) has conducted searches at properties linked to former YSRCP MLA from Visakhapatnam West, Malla Vijaya Prasad, and his business associates in connection with an alleged multi-crore chit fund scam involving a real estate company.
The searches were carried out on August 5 at five locations across Visakhapatnam and Hyderabad linked to the Wellfare Buildings and Estates Pvt Ltd (WBEPL), its directors and other associated individuals.
In a statement issued on Monday, August 10, the ED alleged that Vijaya Prasad and other directors of WBEPL, including Varaha Ramakrishna Satya Sinivasa Rao Alla, used the real estate business as a front to operate a large-scale deposit mobilisation scheme.
According to the agency, WBEPL “collected substantial public funds to the tune of more than Rs. 2000 Crore in violation of statutory provisions, relied on fresh collections to repay earlier investors, diverted investor funds for unrelated purposes and personal gains, manipulated its financial statements to conceal deposits and engaged in irregular land transactions designed to suppress the true consideration and evade statutory obligations.”
The funds were collected from thousands of investors belonging to multiple states, including Odisha, West Bengal, Bihar, Jharkhand and Andhra Pradesh. According to the agency, the investors were promised plots of land in Visakhapatnam in return for their investments.
However, the funds collected from investors were diverted for personal gains and other purposes instead of being used for the promised real estate transactions.
According to the agency, WBEPL has since shut down its operations, with its branches across several parts of the country remaining closed. The closure has allegedly left investors without access to their investments and the promised properties.
During the searches, the ED said it seized Rs 1.01 crore in cash, along with incriminating documents and digital devices relevant to the investigation. The agency also seized six high-end luxury vehicles.
In addition, 182 bank accounts associated with the company and its directors were frozen as part of the ongoing investigation.
(Edited by Fayisa CA)
