Hyderabad : Investigations by the Enforcement Directorate (ED) have revealed cash transactions of Rs 100 crore and Foreign Exchange Management Act (FEMA) violations in firms owned by former MP and Chennuru Congress candidate G. Vivek. A probe was initiated based on a police complaint of Rs 8 crore being transferred from Vivek's bank account to one of his firms.
It has been revealed that Rs 100 crore was transferred to Visakha Industries while FEMA violations were found in Vigilance Security. On Tuesday, ED conducted a search operation at Vivek's residence and offices in Hyderabad, Ramagundam and Mancherial.
Based on evidence, the bank transactions of Vivek and his wife with Visakha Industries were examined. While probing into the financial records of Vigilance Security it was found that the company had disclosed in its balance sheets that it had recorded an income of about Rs 20 lakh through its business activities while, financial transactions of Rs 200 crore was reportedly done by the company. However, an investigation revealed that Vigilance Security, which is controlled by Vivek, had no actual business dealings with Visakha Industries.
Further investigations revealed that Yashwant Realtors is the parent company of Vigilance Security and its majority shares are in the name of a foreigner. FEMA violations were found in Vigilance Security's merger with a foreign entity. It was found that unaccounted cash was used in property deals of the group companies. Also, the company was found non-existent at the declared addresses.
The ED's investigation into the Hyderabad Cricket Association (HCA) scam had unexpectedly revealed the links with Vivek's firm. The documents of the real estate business transactions of the Visakha Industries Group of Companies have been seized by the ED. The Telangana ACB had previously registered cases of Rs 20 crore irregularities in the construction contract of the Rajiv Gandhi International Cricket Stadium in Uppal, Hyderabad.
On the basis of those cases, the ED conducted searches on Tuesday at the houses of former HCA President, Bellampally Congress candidate G. Vinod, former HCA Vice President Sivalal Yadav, former Secretary Arshad Ayub, the office of SS Consultants and residence of MD Satyanarayana of that company.
During the searches, digital devices, documents and cash of Rs 10.39 lakh were seized. The ED concluded that a house belonging to Vinod was being used by his brother Vivek for his Visakha Industries activities.
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