On November 21, 2023, the Directorate of Enforcement (ED) conducted searches in nine Telangana sites by the requirements of the Prevention of Money Laundering Act (PMLA), 2002. The searches were carried out at the homes of Gaddam Vinod and Shivlal Yadav, Arshad Ayub, who served as President, Vice President, and Secretary of the Hyderabad Cricket Association at various times. Searches were also done at the offices of SS Consultants Pvt. Ltd. and the home of its MD, Satyanarayana.
Search efforts resulted in the recovery and confiscation of digital devices, incriminating documents, and Rs.10.39 lakh in unaccounted cash. A search of one of Gaddam Vinod’s properties discovered that it was being used as an office for multiple firms owned or controlled by his brother, former MP Gaddam Vivekanand.
The ED launched an inquiry based on three FIRs reported by the Anti-Corruption Bureau (ACB), Hyderabad, and the associated chargesheets filed by the ACB, alleging criminal misuse of funds from the Hyderabad Cricket Association totaling Rs.20 Crore. The chargesheets allege severe anomalies in the purchase of DG sets, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium, which is being built in Uppal, Hyderabad. According to the chargesheets, despite deadlines, some tasks were significantly delayed, resulting in increased expenses and budget upgrades, as well as corresponding losses to the Hyderabad Cricket Association.
It was also revealed that the Hyderabad Cricket Association’s office bearers, including its then Secretary, President, Vice-President, and others, in collusion with private parties, arbitrarily awarded various tenders and works to preferred vendors/contractors at higher than market rates without following proper tender processes, and in many cases before receiving quotations. Many contractors were paid in advance, but no work was completed.
Searches at the said sites also resulted in the collection of damning papers revealing that Visaka Industries and its group firms have been engaging in big-value cash transactions and cash payments related to their real estate activities regularly.
The recovered documents also show multiple instances of cash being received from various people and adjustment entries being made in the books of such real estate businesses to accommodate such transactions.
