Did the ED Attach Rs 80 Crore in Assets Linked to Telangana MLA?
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Synopsis
In a significant development, the Enforcement Directorate has attached assets worth Rs 80 crore linked to Santosh Sand and Granite Supply, owned by Gudem Mahipal Reddy's brother, amidst allegations of illegal mining practices. This action could have serious implications for local governance and the political landscape in Telangana.
Key Takeaways
- ED's action: Attachment of assets worth Rs 80 crore.
- Investigation: Linked to illegal mining allegations.
- Key figures: Gudem Madhusudhan Reddy and Gudem Mahipal Reddy.
- Legal framework: Under PMLA, 2002.
- Political implications: Possible disqualification proceedings for Mahipal Reddy.
Hyderabad, Nov 24 (NationPress) The Enforcement Directorate (ED) announced on Monday that it has provisionally attached assets valued at Rs 80 crore belonging to Santosh Sand and Granite Supply, a company owned by Gudem Mahipal Reddy's brother, amid an investigation into illegal mining activities.
The Hyderabad Zonal Office of the ED confirmed that it has attached various immovable and movable properties worth Rs 80.05 crore under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing probe into the illegal mining operations conducted by Santosh Sand and Granite Supply.
The investigation was initiated following FIRs filed by the Patancheru Police in Telangana, which claimed that Santosh Sand and Granite Supply, represented by its proprietor Gudem Madhusudhan Reddy and others, defrauded the state government through excessive mining in designated quarry areas and illegal mining on unassigned government lands, leading to a substantial revenue loss of Rs 39.08 crore in payable royalties, while enriching themselves unlawfully by approximately Rs 300 crore.
During the investigation, the ED conducted searches that resulted in the seizure of numerous original property documents from Gudem Madhusudhan Reddy.
Further inquiries revealed that, despite these properties being registered under different names, the true beneficial owner was Gudem Madhusudhan Reddy.
An examination of the supposed property owners indicated that these were, in fact, benami properties linked to Gudem Madhusudhan Reddy, as per the ED's statements.
Additionally, the investigation uncovered that the mining license had been granted to Santosh Sand and Granite Supply, which subsequently subcontracted operations to GVR Enterprises, a partnership involving Gudem Madhusudhan Reddy and G. Vikram Reddy. This subcontracting was not authorized under the lease terms, and no permission was sought from the state government.
The ED's findings also indicated that the illegally mined materials were primarily sold for cash, and the proceeds of crime (POC) generated were reinvested into properties, many of which were held under benami names.
As a result, a total of 81 properties valued at Rs 78.93 crore have been provisionally attached during the investigation.
Furthermore, it was noted that some amounts were owed to GVR Enterprises from buyers of the illegally mined materials, which also constituted POC. Consequently, fixed deposits totaling Rs 1.12 crore in the names of these entities have also been attached. The investigation is still ongoing, according to the central agency.
Gudem Madhusudhan Reddy is the sibling of Gudem Mahipal Reddy, the MLA representing the Patancheru constituency in Sangareddy district.
Last July, the ED had interrogated both brothers following raids conducted at seven locations linked to them.
In 2023, Mahipal Reddy was re-elected to the Assembly for a third consecutive term on a Bharat Rashtra Samithi (BRS) ticket.
Mahipal Reddy is among the ten BRS MLAs who shifted their allegiance to Congress last year and are currently facing disqualification proceedings.
Point of View
It is crucial to acknowledge the seriousness of the allegations against prominent political figures. The ED's actions highlight the importance of accountability and transparency in governance, especially in cases of illegal activities that undermine public trust. The unfolding investigation serves as a reminder of the need for stricter oversight in resource management and political integrity.
NationPress
24/11/2025
Frequently Asked Questions
What prompted the ED's investigation into Gudem Mahipal Reddy's brother?
The investigation was prompted by FIRs filed by the Patancheru Police alleging illegal mining activities by Santosh Sand and Granite Supply, leading to significant financial losses for the state.
What legal framework is the ED using for these actions?
The ED is acting under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, to attach properties linked to the case.
How much revenue loss is attributed to the illegal mining?
The illegal mining activities have reportedly caused a revenue loss of approximately Rs 39.08 crore in payable royalties.
What are benami properties?
Benami properties are assets that are held by one person but are beneficially owned by another, often used to conceal the true ownership to evade legal scrutiny.
What are the potential consequences for Gudem Mahipal Reddy?
As the brother of Gudem Madhusudhan Reddy, he may face political and legal scrutiny, especially in light of his recent election and the ongoing disqualification proceedings.
