Hyderabad, Nov 23: The Directorate of Enforcement (ED) executed searches on Tuesday, in Telangana, invoking the provisions of the Prevention of Money Laundering Act (PMLA), 2002, across nine locations.
The targeted residences included those of Gaddam Vinod, Shivlal Yadav, and Arshad Ayub, individuals who had previously served as President, Vice-President, and Secretary, respectively, of the Hyderabad Cricket Association at different times, a release said on Wednesday.
Simultaneous searches were also conducted at the office premises of SS Consultants Private Limited and the residential address of its Managing Director, Satyanarayana. The operations resulted in the retrieval and seizure of digital devices, incriminating documents, and unaccounted cash amounting to Rs. 10.39 lakh. Notably, a search at one of Gaddam Vinod’s premises exposed its use as an office for several companies owned or controlled by his brother, Gaddam Vivekanand, a former Member of Parliament.
The ED’s investigation was prompted by three FIRs filed by the Anti-Corruption Bureau (ACB), Hyderabad, and the subsequent chargesheets related to the alleged misappropriation of Rs. 20 Crore in funds from the Hyderabad Cricket Association. The chargesheets detailed serious irregularities in the procurement of DG sets, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium in Uppal, Hyderabad.
According to the chargesheets, delays in numerous works led to escalated costs and budget overruns, causing substantial losses to the Hyderabad Cricket Association. The investigation also revealed that the office bearers, including the Secretary, President, and Vice-President, colluded with private entities to manipulate tenders and works, securing contracts at rates higher than the market average and often before receiving quotations.
Advance payments were made to contractors who failed to complete the assigned work. Searches at the premises uncovered incriminating documents disclosing that Visaka Industries and its group companies engaged in sizable cash transactions and cash payments related to their real estate activities.
Moreover, the seized documents indicated instances of cash receipts from various individuals and the adjustment of entries in the books of real estate companies to accommodate such transactions. The ED confirmed that further investigations are underway.
