The Enforcement Directorate (ED) has attached properties worth Rs 246 crore under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) in a gutkha scam case.
The attached properties comprise 174 immovable properties, worth Rs 243.80 crore, in Tamil Nadu, Puduchery and Andhra Pradesh and moveable properties in the form of shares and vehicles worth Rs 2.29 crore.
ED has initiated investigations under the provisions of PMLA in the scam against unknown officials of state and central government, public servants and others based on a FIR filed by the CBI.
CBI had registered FIR on the directions of the High Court, Chennai to conduct investigations into all aspects of the offence of illegal manufacture, import, supply, distribution and sale of gutkha and other chewable tobacco which were banned in the State of Tamil Nadu and Puducherry from May 2013.
"Investigation revealed that accused AV Madhava Rao, PV Srinivasa Rao, Tallam Uma Shankar Gupta and others had associated in illegal manufacture, sale and distribution of Gutkha products in Tamil Nadu had a turnover of Rs 639.40 crores from June 2013 to June 2016 and the ill- gotten money derived out of the criminal activities were invested in movable and immovable properties in Andhra Pradesh, Puducherry and Tamil Nadu," said ED in statement.
Three factory premises were also acquired by the accused in the names of relatives and employees to facilitate smooth running of their illegal gutkha business.
The major investments in real estate made by the accused were in Guntur district of Andhra Pradesh apart from investments in Salem, Puducherry and Chennai.
| What Investigation Reveals |
| Investments were made by the accused for the purchase of land in the name of Gayathri Realtors and Medha Dairy Private Limited |
| Shares were purchased in Goutham Buddha Textile Park, Guntur, and vehicles were bought for the sale and distribution of gutkha products |
