Andhra: ED Freezes Assets in GATES Society Money Laundering Investigation
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Synopsis
The ED has provisionally attached 13 properties worth Rs. 3.44 crore linked to the GATES society in Andhra Pradesh due to money laundering activities. These actions stem from an investigation into the diversion of society funds and improper financial practices.
Key Takeaways
- The ED has attached 13 properties in Andhra Pradesh.
- Valuation of attached properties is Rs. 3.44 crore.
- Investigation relates to GATES society's fund mismanagement.
- Proceeds were funneled into personal accounts.
- Investigation is ongoing with further developments expected.
Visakhapatnam, Jan 17 (NationPress) The Directorate of Enforcement (ED), Visakhapatnam has provisionally attached 13 immovable properties valued at approximately Rs. 3.44 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in relation to the misappropriation of funds from the General and Technical Education Society, Gudivada (GATES), Andhra Pradesh.
The seized assets belong to the late Vemulapalli Venkateswara Rao, former Secretary of GATES, along with his family members.
The ED's investigation commenced following an FIR filed by the Gudivada Police Station under various sections of the Indian Penal Code (IPC) against Vemulapalli Venkateswara Rao and others, alleging that they had alienated valuable properties of GATES at significantly reduced values while diverting society funds by failing to record cash revenues in the financial statements.
Further inquiries by the Central agency uncovered that the accused intentionally collected cash revenue from society operations through several methods, including renting out auditoriums without issuing payment receipts, accepting cash security deposits, and inflating employee salaries, which were subsequently withdrawn as cash and given to the accused.
This method allowed approximately Rs. 3.44 crore in cash revenue generated by GATES to go unreported in the society's financial records, leading to misappropriation by the accused.
The Proceeds of Crime (POC) were subsequently funneled into bank accounts belonging to family members and officials of the society.
Ultimately, these funds were utilized by the accused to acquire various properties, including GATES assets, purchased at prices significantly lower than their market values. Numerous properties obtained through POC have been attached by the ED as part of its ongoing investigation.
