ED books BRS MLA Gudem Mahipal Reddy and his brother in ₹300 crore granite scam

According to the statement issued by ED, the illegally amassed scam amount was in the form of cash and the accused invested the same in real estate.

ByDeepika Pasham

Published Jun 22, 2024 | 11:11 AM Updated Jun 22, 2024 | 11:11 AM

BRS MLA G Mahipal Reddy (left), his brother G Madhusudhan Reddy (right). (X)

In the recently concluded Enforcement Directorate (ED) raids at the residences of BRS Patancheru MLA Gudem Mahipal Reddy and his brother Madhusudhan Reddy, the sleuths have uncovered a scam of ₹300 crore.

The case was being investigated by the ED following the Telangana police FIRs against the Santosh Sand and Granite Supply, Patancheru owned by Madhusudan Reddy, under the Prevention of Money Laundering Act (PMLA), 2002.

The search operation at the Gudem brothers’ residences and other locations began on Thursday, 20 June.

Also Read: ED sleuths descend on properties of BRS MLA Mahipal Reddy and brother 

ED’s allegations

According to the statement issued by ED, the illegally amassed scam amount was in the form of cash and the accused invested the same in real estate.

The statement further read: “The accused firm was found to have excavated and transported excess quantity of 11,98,743 cubic metres (CBM) of building stone and road metal within the quarry lease permitted area and 10,11,672 cubic metres (CBM) of material, beyond the permitted area.”

The said illegal mining, which was done beyond the permitted area is alleged to have taken place in the 10-acre encroached government land, exceeding what had been permitted in Lakdaram village in the erstwhile Medak district.

ED has also said that illegally excavated material was deliberately not reported in banking transactions and books of accounts.

“The search operations led to the seizure of unaccounted cash of ₹19 Lakh along with a large number of property documents in the names of unrelated persons who are suspected to be benamis of accused persons. Mobile phones containing evidence related to cash dealings were also seized.”

The sleuths said that the bank locker keys were also recovered and examination of the lockers is expected to reveal further incriminating evidence as the case is still under investigation.

Also Read: Banswada MLA and former Speaker Pocharam Srinivas Reddy joins Congress

BRS reacts

Following the raids, BRS MLA Harish Rao visited Gudem Mahipal Reddy at his residence on Friday.

Later speaking to the media he said, “About the ED raids on Gudem Mahipal Reddy we would like to tell that Central and State governments are intimidating opposition MLAs with ED attacks.”

He further alleged, “There is no cash, gold and other items found at Mahipal Reddy’s residence. The documents are according to the IT returns law. Then why are the raids being conducted?”

Training guns at the Union government regarding the paper leak fiasco, Harish questioned, “There is a bigger scam of NEET exam paper leak, and why is no official concentrating on it?”

However, there were speculations that Mahipal Reddy and three other BRS MLAs from the erstwhile Medak District were planning to join the Congress government in the state after it had Madhusudhan Reddy arrested for illegal mining and quarrying in March.

(Edited by Sumavarsha Kandula.)