Updated February 13th, 2024 at 17:14 IST
ED Seizes Rs 31 Lakh Cash During Searches in Karnataka, Andhra Pradesh
The ED's search operation was conducted in relation to a money laundering case involving two individuals identified as Surya Narayana Reddy and Bharath Reddy.
NEW DELHI: The Enforcement Directorate (ED), on Tuesday, said that it had carried out multiple searches at locations across Karnataka and Andhra Pradesh, seizing Rs 31 lakhs as part of a money laundering case. A case under the provisions of the Prevention of Money Laundering Act 2002 was registered against two individuals identified as Surya Narayana Reddy and Bharath Reddy. It stems from an FIR registered in Karnataka's Bellary and the searches were carried out on February 10, the agency said in a statement. As for why the money laundering case has been registered against the two accused, the agency said that it has found ‘incriminating’ evidence indicating that Bharath Reddy allegedly mobilised Rs 42 crore cash over a period of a few months ahead of the assembly elections and utilised the funds for “unlawful transactions”.
Alongside Rs 31 lakh worth of “unaccounted cash”, the searches in Karnataka and Andhra Pradesh also yielded a "network of incriminating documents", business records and details of immovable and movable properties. Crucial evidence was seized which established the involvement of Bharath Reddy, his assistant Rathna Babu and others in mobilising substantial amounts of cash for illegal payments, the ED said.
The ED investigation also allegedly found that Sharath Reddy, who is the brother of Bharath Reddy, made undisclosed investments in foreign-based companies. The accused individuals were allegedly found to have invested in properties under "benami names and obtained suspicious loans from relatives, utilising their bank accounts without their knowledge".
Further investigation is in progress, the ED said.
With inputs from PTI.
Published February 13th, 2024 at 17:14 IST