Hyderabad: The Directorate of Enforcement (ED) conducted searches at the residence of Gaddam Vinod, former president of Hyderabad Cricket Association (HCA) who has been named Congress’ candidate from Bellampalli, in connection with alleged irregularities that took place a few years ago in the HCA, sources said.
Based on FIRs and charge sheets filed by the ACB officials, the ED initiated an investigation into the cases and conducted searches at different places in Hyderabad, including residences of former HCA presidents N. Shivlal Yadav, Arshad Ayub and G. Vinod.
It was alleged that former HCA presidents diverted funds under the guise of constructing buildings at the Rajiv Gandhi International Stadium. The estimated value was increased from the original estimate and it was also alleged that funds were diverted under the guise of purchasing chairs and other furniture for the cricket stadium.
ED officials raided the residence of Visaka Industries’ chief Vivek Venkat Swamy, who is also a Congress contestant, from Chennur, in connection with the funds transfer from the firm’s accounts.
The ED inspected the accounts of Visaka Industries, individuals associated with it and their monetary transactions after a transaction of '8 crore made by Visaka Industries drew attention in the run-up to the polls.
In related incidents, the ED also raided four locations, including the residence of Dr Gaddam Vivekanand in Hyderabad and his temporary residences in Hitec City and Mancherial districts, the office of Visaka Industries Ltd in Hyderabad and the office of Vigilance Security Services Pvt. Ltd in Ramagundam.
The searches came after the police tracked the transfer of '8 crore to Vigilance Security, to allegedly circuitously transfer money with no real business rationale.
The ED probe found that G. Vivek, his wife and their company, Visaka Industries, had logged transactions of more than '100 crore with Vigilance Security, while the entity declared only '20 lakh as ‘revenue from operations’ in its latest balance sheet. However, it reported assets worth '64 crore, mainly in the nature of long-term loans and advance payments.
Since inception, credit and debit transactions in the company’s impugned bank account were found to be more than '200 crore. The investigation also revealed indirect control of Dr G. Vivek over Vigilance Security, sources said.
The ED further revealed prima facie FEMA contraventions by Vigilance Security Services Pvt. Ltd and its parent company, Yeshwant Realtors, whose majority shares are held by a foreign national. FEMA violations were also noticed in the incorporation of an entity by Dr G. Vivek in a foreign tax-haven country.
