Hyderabad: Enforcement Directorate (ED) officials, investigating alleged irregularities in mining involving Patancheru BRS MLA Gudem Mahipal Reddy and his brother G. Madhusudhan Reddy, verified the bank lockers belonging to the MLA at a bank in Patancheru on Monday.
Reports indicate that the ED examined the bank lockers of Mahipal Reddy and his family members, suspecting benami business activities and violations.
Following the questioning of MLA Mahipal Reddy by the ED, a team of officers obtained details of bank transactions involving Mahipal Reddy and his brother Madhusudhan Reddy. Acting on inputs received during the interrogation, ED officials verified the bank lockers in the presence of Mahipal Reddy and other concerned parties.
Mahipal Reddy, who was questioned by ED officers regarding alleged illegal business activities, remained silent and tried to avoid answering the officers' questions.
On June 20, the ED conducted search operations at 10 locations in and around Hyderabad in connection with a money laundering case being investigated against Santhosh Sand and Granite Supply, Patancheru, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation is based on FIRs registered by Telangana police against Santhosh Sand and Granite Supply, a proprietary concern of Madhusudan Reddy. The accused firm was found to have excavated and transported an excess quantity of 11,98,743 CBM of building stone and road metal within the permitted quarry lease area and 10,11,672 CBM of material beyond the permitted area, encroaching on government land measuring 4.37 hectares.
Through these activities, the accused allegedly amassed around `300 crore by selling illegally excavated material and evaded royalty payments amounting to `39.08 crore due to the government.
