Launched in 2017, the scheme aimed to boost rural livelihoods by offering a 75% state subsidy on sheep to members of traditional shepherd communities, supporting their income and livelihood security
Published Jul 30, 2025 | 10:15 PM ⚊ Updated Jul 30, 2025 | 10:15 PM
ED raids rock Hyderabad in multi crore Sheep distribution scam probe linked to former BRS government (@Collector_PDPL on X)
Synopsis: The Enforcement Directorate on 30 July carried out raids at 6–8 locations in Hyderabad as part of its probe into the multi-crore sheep distribution scam under the previous BRS government. Conducted under the PMLA, the searches targeted key suspects including ex-Minister Talasani’s OSD G. Kalyan and ex-TSSGDCF MD Sabavath Ramachander
The Enforcement Directorate (ED) on Wednesday, 30 July, launched a series of coordinated raids across six to eight locations in Hyderabad, intensifying its investigation into the multi-crore sheep distribution scam that allegedly occurred during the tenure of the Bharat Rashtra Samithi (BRS) government in Telangana.
The searches, conducted under the Prevention of Money Laundering Act (PMLA), targeted residences and offices of key individuals suspected of involvement in the scam. Among those raided were G. Kalyan, who served as Officer on Special Duty (OSD) to then Animal Husbandry Minister Talasani Srinivas Yadav, and Sabavath Ramachander, the former Managing Director of the Telangana State Sheep and Goat Development Cooperative Federation (TSSGDCF).
The ED’s probe is based on an earlier investigation by the Anti-Corruption Bureau (ACB), which registered multiple First Information Reports (FIRs) after receiving complaints alleging extensive financial irregularities in the implementation of the Sheep Rearing and Development Scheme (SRDS).
Launched in 2017, the scheme aimed to enhance rural livelihoods by providing subsidized sheep to members of the traditional shepherd communities. Under the scheme, beneficiaries were to receive sheep with a 75 percent subsidy from the state government. According to official figures, over 1.28 crore sheep were reportedly distributed at a total cost of nearly ₹4,980 crore. Of these, 82.74 lakh sheep were procured from outside Telangana and distributed to approximately 3.92 lakh beneficiaries through Primary Sheep Breeders Co-operative Societies (PSBCS).
However, the Comptroller and Auditor General (CAG), in one of its report, flagged serious anomalies in the scheme’s implementation across seven of the state’s 33 districts. The report estimated a loss of ₹253.93 crore, citing several alarming findings: missing or falsified beneficiary records, inflated transportation invoices, use of non-commercial vehicles for transport, duplication of sheep tag numbers, and allocations to deceased or fictitious beneficiaries.
According to official sources, the scale of the scam could be close to ₹700 crore to ₹1,000 crore and that a detailed financial trail is being uncovered. The ED’s investigation, which officially began in June 2024, after the advent of the Congress led government, has reportedly unearthed strong evidence of misappropriation of public funds through inflated procurement costs, fake transportation bills, and the use of benami accounts.
Wednesday’s raids were directed at individuals suspected of facilitating the diversion of funds and laundering money. Prominent among those under the scanner are Ram Chander Naik, former Director of the Animal Husbandry Department, and Moinuddin, both of whom are named in the ACB’s FIRs. The ED has seized a trove of digital data and documents believed to be crucial to tracing the flow of funds and identifying shell vendors.
Investigators believe the scheme, originally intended to uplift economically weaker sections within the Golla and Kuruma communities, was systematically exploited to embezzle funds by creating fictitious beneficiaries, manipulating invoices, and rerouting money through intermediaries and front companies.
The ACB’s inquiry began in January 2024 following a surge in complaints from beneficiaries who alleged they had been denied the promised livestock or received fewer sheep than recorded. In December 2023, the bureau registered criminal cases against multiple officials of the Animal Husbandry Department, including two assistant directors and two contractors, for their suspected roles in the scam.
Wednesday’s raids mark a significant escalation in the ED’s efforts to unravel one of the largest alleged welfare scheme scams in the state’s recent history. As the investigation progresses, more arrests and financial disclosures are expected in the coming weeks.
(Edited by Ananya Rao)
