In Karimnagar and Hyderabad on November 9 and 10, 2022, the directorate of Enforcement (ED) conducted searches at the offices and residential properties of M/s. Swetha Granites, Swetha Agencies, Sri Venkateshwara Granites Private Limited, M/s. PSR Granites Private Limited, M/s. Arvind Granites, M/s. Giriraj Shipping Agencies Private Limited, and their related entities. Rough granite blocks are exported by the aforementioned companies to China, Hong Kong S.A.R., China, and other nations.
Investigations revealed that the quantity exported exceeded the amount for which royalties were paid and that the quantity was underreported during export. The fact that the export proceeds frequently do not materialise in the declared bank accounts suggests that they were acquired through methods other than banking channels.
The ED search teams discovered and confiscated unaccounted cash of Rs. 1.08 crore that was reportedly received in Hawala against exports during the search activity. They also collected extensive granite dispatch data from the quarries dating back ten years. The ED search teams also discovered many benami bank accounts kept in the names of workers of granite exporters, where money obtained from the illicit granite exports was being placed, during the search effort. In the course of the search, it was also discovered that money was being transferred back from Chinese businesses into Indian entities via undocumented hand loans. The owner of these Chinese companies is Li Wenhuo, whose name surfaced in the Panama Papers.
ED Based on a report from the state government’s Vigilance & Enforcement Dept., an investigation into illegal granite mining and FEMA violations has been started. It found widespread Seigniorage fee evasion on granite blocks transported by railroads from Karimnagar District quarry lease areas to seaports, and exporters were asked to pay the evaded royalty but did not. Further research is now being conducted.
