The Directorate of Enforcement (ED) in Hyderabad has taken action against K. Sudheer Babu and his associates Vaddi Narsimha Reddi, T. Nithin, and M. Sudarshan under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. As part of their investigation into alleged financial wrongdoing or money laundering activities, the ED has attached movable properties worth Rs. 6.57 lakh belonging to these individuals.
The Enforcement Directorate (ED) initiated an investigation based on four FIRs filed by the Central Bureau of Investigation (CBI) in Hyderabad. The FIRs were lodged under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption (PC) Act, 1988, against Kandula Sudheer Babu (K. Sudheer Babu) and others. Allegedly, Sudheer Babu, who was a Senior Superintendent of Post Offices in the Postal Department’s Hyderabad City Division, and his associates engaged in the unauthorized exchange of demonetized currency notes with new ones, amounting to Rs. 3.75 crore, following the demonetization initiative.
The ED investigation uncovered that K. Sudheer Babu misused his official authority and colluded with his associates to exchange old currency notes for new ones obtained from multiple post offices under his jurisdiction in Hyderabad. This activity led to the generation of proceeds of crime and financial gains amounting to Rs. 87.19 lakh in the form of commission. In an attempt to conceal these illicit proceeds, Sudheer Babu allegedly transferred the funds to his relatives.
The outcome of the investigation conducted by the Enforcement Directorate (ED) resulted in the attachment of Rs. 6.57 lakh from the bank accounts of the implicated individuals. This includes Rs. 5.64 lakh from K. Sudheer Babu, Rs. 29,000 from M. Sudarshan, and Rs. 64,000 from Vaddi Narasimha Reddi, pursuant to a Provisional Attachment Order dated March 20, 2024. This action signifies the ED’s efforts to restrain assets suspected to be proceeds of crime, thereby furthering their investigation into financial misconduct and money laundering activities involving the aforementioned individuals.
