What Happened in the Sheep Distribution Scam Case? ED Conducts Searches in Hyderabad

Synopsis
Key Takeaways
- ED's Investigation: The Enforcement Directorate is investigating a scam involving significant fund misappropriation.
- Key Figures: G. Kalyan Kumar and Sabavath Ramachander are among those implicated.
- Scheme Launch: The sheep distribution scheme was initiated in 2017 to aid shepherd families.
- Financial Misconduct: Evidence suggests misuse of funds through forged documents.
- Public Accountability: The case emphasizes the need for transparency in government initiatives.
Hyderabad, July 30 (NationPress) The Enforcement Directorate conducted extensive searches across various locations in Hyderabad on Wednesday, as part of its investigation into the sheep distribution scam.
The agency is examining the alleged discrepancies in the sheep distribution and development scheme that was executed during the former administration of the Bharat Rashtra Samithi (BRS).
Search operations targeted properties associated with several suspects, including G. Kalyan Kumar, Officer on Special Duty (OSD) to the ex-Animal Husbandry Minister Talasani Srinivasa Yadav, and Sabavath Ramachander, the former managing director of the Telangana State Sheep and Goat Development Cooperative Federation (TSSGDCF).
Kalyan has been implicated in one of the FIRs filed by the Anti-Corruption Bureau (ACB), which has estimated the total scam value at approximately Rs 700 crore.
Last year, the ED commenced its investigation under the Prevention of Money Laundering Act (PMLA), prompted by FIRs lodged by the ACB.
The ED initiated a money laundering case in June 2024 and began collecting documents from the animal husbandry department and the TSSGDCF, which included beneficiary lists, vendor information, transport records, and payment documentation.
The scheme was launched by the state government in April 2017 to ensure sustainable livelihoods for traditional shepherd families and enhance their economic status.
In the initial phase, each family received 20 sheep and a ram, costing Rs 1.25 lakh with a 75 percent subsidy. Reports indicate that over 1.28 crore sheep were distributed, with total expenditure reaching Rs 4,980.31 crore.
Approximately 82.74 lakh sheep were sourced from other states and allocated to 3.92 lakh members of the Primary Sheep Breeders Co-operative Societies (PSBCS).
However, investigations uncovered large-scale misappropriation via inflated procurement invoices, fraudulent transportation records, and benami accounts.
The ACB initiated an inquiry in January 2024 after receiving allegations that certain beneficiaries were defrauded.
A case was filed in December 2023 after complaints against several officials and middlemen, including two assistant directors from the animal husbandry department and two contractors.
The ACB has charged multiple government officials, including Sabavath Ramachander and Kalyan Kumar. Allegations suggest that funds intended for the scheme were diverted using forged bank accounts and shell companies.