In a significant development, the Directorate of Enforcement (ED) carried out searches at nine locations in Telangana on 21.11.2023, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The searches targeted residences and offices associated with key figures, including Gaddam Vinod, Shivlal Yadav, and Arshad Ayub, who held pivotal roles as President, Vice-President, and Secretary of the Hyderabad Cricket Association at various intervals.
The investigative actions extended to the premises of SS Consultants Pvt. Ltd. and the residence of its Managing Director, Satyanarayana. The operation resulted in the confiscation of digital devices, incriminating documents, and unaccounted cash totaling Rs. 10.39 lakh.
Notably, one of Gaddam Vinod’s premises was revealed to be serving as an office for multiple companies owned or controlled by his brother, Gaddam Vivekanand, a former Member of Parliament.
The ED’s probe stems from three First Information Reports (FIRs) filed by the Anti-Corruption Bureau (ACB), Hyderabad. The ACB chargesheets detail alleged criminal misappropriation of funds amounting to Rs. 20 Crore within the Hyderabad Cricket Association.
The charges include serious irregularities in the procurement of DG sets, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium in Uppal, Hyderabad. The delayed projects resulted in escalated costs, budget overruns, and substantial losses for the cricket association.
Furthermore, the chargesheets assert that office bearers of the Hyderabad Cricket Association, in collusion with private entities, manipulated tender processes. This involved preferential allocation of tenders and contracts at rates higher than the market norms, sometimes even before the submission of quotations. Numerous instances of advance payments to contractors with little to no work done have been uncovered.
The searches at these locations also unearthed incriminating documents exposing financial improprieties within Visaka Industries and its affiliated companies. The documents suggest that these entities engaged in substantial cash transactions related to real estate activities. The investigation has revealed instances of cash receipts from various sources, with corresponding adjustment entries found in the companies’ books to accommodate these transactions.
The Enforcement Directorate emphasized that the investigation is ongoing.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
