ED attaches Rs 80 cr assets of firm linked to MLA’s brother

Hyderabad: The Enforcement Directorate has provisionally attached immovable and movable assets worth Rs 80.05 crore in an illegal mining case involving Santosh Sand and Granite Supply company, run by Gudem Madhusudhan Reddy, brother of Patancheru MLA Gudem Mahipal Reddy.

The attachment was made under the Prevention of Money Laundering Act, the ED said on Monday. The investigation was based on FIRs filed by Patancheru police alleging that the firm, represented by Madhusudhan Reddy and others, carried out large-scale excess mining in its allotted quarry and also illegally extracted mineral from govt land not allotted to it.


This caused a royalty loss of Rs 39.08 crore to the state exchequer, investigators said. The accused allegedly amassed around Rs 300 crore through these illegal operations, the ED said.

During searches, the ED seized several original property documents from Madhusudhan Reddy's possession. Though the properties were registered in the names of various individuals, investigators found they were benami holders and identified Madhusudhan Reddy as the beneficial owner, the agency said.

The probe also found that while the govt had granted a mining licence to Santosh Sand and Granite Supply, the firm illegally sub-contracted the work to GVR Enterprises, a partnership between Madhusudhan Reddy and G Vikram Reddy. This was in violation of lease conditions and done without approval from authorities, the intestigators alleged.

According to the ED, illegally mined material was largely sold for cash, and the proceeds of crime were routed into real estate purchases, many in benami names.

In all, 81 properties valued at Rs 78.93 crore have been attached. Fixed deposits worth Rs 1.12 crore, representing outstanding payments due to GVR Enterprises from buyers of the illegally mined material, have also been attached. The ED said further investigation is under way.



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