Hyderabad, Aug 1 (IANS) The Directorate of Enforcement (ED) estimates that the “financial irregularities” in the implementation of the Sheep Rearing Development Scheme (SRDS) in Telangana may exceed Rs 1,000 crore.

ED, Hyderabad Zonal Office on July 30 conducted search operations at eight locations in Hyderabad under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Searches were conducted at the premises of G. Kalyan Kumar, OSD to the then Animal Husbandry Minister T. Srinivasa Yadav, as well as certain beneficiaries and middlemen identified during ED investigation, the ED said in a statement on Friday (August 1).

Search operations led to the recovery and seizure of incriminating material evidencing transactions indicating illegal payments in the form of kickbacks to various government officials and others, the agency.

Documents pertaining to numerous bank accounts, including blank cheque books, passbooks and debit cards associated with over 200 suspected dummy/mule accounts linked to an illegal online betting application, were recovered from one of the premises.

Searches also led to the seizure of 31 used mobile phones and over 20 SIM cards, which are suspected to have been utilised in the operation of the illegal activities, the agency added.

The ED initiated an investigation in SRDS on the basis of FIRs registered by the Anti-Corruption Bureau, Hyderabad. In one FIR, it was alleged that after the formation of the new government in the state, the OSD to the ex-minister Srinivasa Yadav removed some records from the department office by breaking in. Another FIR was registered by a complainant sheep merchant alleging that Rs 2.1 crore, which was due to be paid to them for supplying sheep units, was siphoned off by the departmental assistant directors by diverting the amount to other unrelated accounts.

In addition, the CAG’s Audit Report for the period ended March-2021 revealed several irregularities in the implementation of the SRDS scheme such as non-maintenance of beneficiary wise details, improper record of invoices pertaining to transportation invoices and payments, payments against invoices containing fake/ passenger vehicles/ non-transport vehicle registration numbers, duplicate tags allotted to sheep units, sheep units allotted to dead/ non-existent persons, etc.

“The CAG’s audit report is limited to only 07 districts (out of 33 in Telangana) wherein estimated loss to the government was pegged at Rs 253.93 crore. On a proportionate basis for all the 33 districts in the entire state of Telangana, the loss is likely to exceed Rs 1000 crore,” the ED said.

The ED investigation revealed that substantial funds were transferred to the bank accounts of several persons/entities towards payment in lieu of supply of sheep for beneficiaries under SRDS. The investigation further revealed that prior to the launch of SRDS, these beneficiaries were not involved in the business of sale and supply of sheep.

The investigation also indicated that no sale/purchase of sheep was ever done by these recipients of funds. It said the government funds were illegally diverted to bank accounts of bogus vendors.

The ED investigation allegedly also substantiated the findings of the audit, which identified payments made to fictitious vendors and evidence of recycling of sheep units, ostensibly to fraudulently claim disbursements from government funds without the actual supply of sheep units.

–IANS

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