Karimnagar: The Enforcement Directorate (ED) has issued a show-cause notice to Swetha Granites and Swetha Agencies owned by the family members of the Backward Class Welfare minister Gangula Kamalakar for violating the Foreign Exchange Management Act (FEMA).
The ED officials identified irregularities in exporting granite material to China by Swetha granite companies. They paid only Rs.3 crores to the government and have to pay around Rs.50 crores.
In November last year, ED and Income Tax (IT) department officials conducted three-day raids at granite companies in Baopet of Kothapally mandal in Karimnagar district. ED also searched the house of Gangula Kamalakar and his residence serves as the official address of Swetha Granites.
The officials visited Kakinada. Krishnapatnam, Chennai and Visakhapatnam ports and during the inspection it was found that the size of the granites mentioned to the mines department was different from the actual size of export. The size of the granite was 7.6 lakh cubic meters which exceeded the permissible quantity.
The officials suggested to authorities concerned to collect penalty and Seigniorage as per Rule 26 (3)/ (i) (ii), AP MMC 1996 Act from Swetha granite companies and Swetha agencies.
The ED in its notice issued also said that it had collected the evidence of transporting the money through Hawala
