Properties worth Rs. 22.10 billion were registered in the names of companies associated with M/s Diwakar Road Lines and M/s. J.C. Prabhakar Reddy, a former MLA, controls Jatadhara Industries Pvt Ltd and M/s. In an ongoing investigation being carried out under PMLA, 2002 in the case relating to the BS-IV vehicles, C. Gopal Reddy and Co (belonging to his close associate Gopal Reddy, a civil contractor of Tadipatri, Ananthapur District A.P.) and family members of J C Prabhakar Reddy and Gopal Reddy have been named.
By order dated 29.03.2017, the Honourable Supreme Court of India mandated that starting on April 1, 2017, no manufacturer or dealer could sell any automobiles in India that did not meet the BS IV emission standards. The registering authorities were also forbidden from registering any such vehicles. Though both M/s. Jatadhara Industries Pvt Ltd (JIPL) and In violation of the aforementioned Order, C. Gopal Reddy and Co. bought BS-III vehicles from Ashok Leyland Ltd. at a reduced price and then fraudulently registered them as BS-IV vehicles by falsifying the invoice copies. According to an investigation, some of the registrations were made in Andhra Pradesh, Nagaland, and Karnataka.
The crime was established by the directorate of Enforcement (ED) after it obtained evidence in the form of fake invoices from Nagaland’s RTO authorities and actual invoices provided by Ashok Leyland as scrap for some vehicles. The estimated value of the crime proceeds from owning, operating, or selling these automobiles is Rs 38.36 Crore.
The inquiry and searches turned up 68 immovable properties worth a total of Rs. 15.79 crore and Rs. 6.31 crore in Shri’s moveable property, which included bank balances, cash, jewellery, and receivables. J.C. Prabhakar Reddy, a member of his family, and Shri C. Gopal Reddy and his family enjoy a close relationship. A more comprehensive investigation is being conducted, including an investigation of Ashok Leyland’s involvement in the widespread fraud.
