ED raids Ex-Hyderabad Cricket Association Officials in Money Laundering Case

The Directorate of Enforcement (ED) conducted searches at nine sites in Telangana in accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002 on November 21, 2023. The searches focused on the homes and offices of major personalities such as Gaddam Vinod, Shivlal Yadav, and Arshad Ayub, who served as President, Vice-President, and Secretary of the Hyderabad Cricket Association at various times.

The investigation expanded to the offices of SS Consultants Pvt. Ltd. as well as the home of its Managing Director, Satyanarayana. The operation led in the seizure of digital gadgets, damning papers, and Rs. 10.39 lakh in unaccounted cash.

Notably, one of Gaddam Vinod’s properties was shown to be operating as an office for various firms owned or managed by his brother, former Member of Parliament Gaddam Vivekanand.

The ED’s investigation is the result of three First Information Reports (FIRs) submitted by the Anti-Corruption Bureau (ACB) in Hyderabad. The ACB chargesheets explain the alleged illegal misuse of Rs. 20 crore in finances within the Hyderabad Cricket Association.

Serious anomalies in the purchase of DG sets, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium in Uppal, Hyderabad, are among the claims. Project delays resulted in increased expenses, budget overruns, and significant losses for the cricket organisation.

Furthermore, the chargesheets allege that Hyderabad Cricket Association officials manipulated tender processes in conjunction with commercial firms.

This included preferential distribution of tenders and contracts at rates greater than market norms, often even before quotations were submitted. There have been several reports of contractors receiving advance payments with little or no work completed.

Incriminating documents indicating financial irregularities inside Visaka Industries and its connected firms were also discovered during the searches at these sites. According to the records, these firms participated in significant monetary transactions relating to real estate activity.

The examination uncovered instances of cash inflows from a variety of sources, with appropriate adjustment entries discovered in the firms’ accounts to accommodate these transactions.

The investigation is still underway, according to the Enforcement Directorate.