The Enforcement Directorate has brought fresh attention to alleged irregularities in Andhra Pradesh’s sand mining sector during the previous YSRCP government. In a statement released after recent searches, the agency claimed that serious violations took place in the award and execution of sand mining contracts, leading to massive losses for the state.
According to the ED, former Mining Department Director V.G. Venkata Reddy played a key role in the process and allegedly misused his official position to favor certain private companies. Investigators claim that the tender process was not carried out in a fair and transparent manner and that a handful of firms received undue benefits.
Acting on information related to suspected money laundering, ED officials conducted searches on May 27 at eight locations in Hyderabad, Jaipur and Coimbatore. The raids covered the offices of Pratima Infrastructure, GCKC Projects and Turnkey Enterprises, which were associated with sand mining contracts in Andhra Pradesh. Searches were also carried out at the residences of businessman Boyinapalli Srinivasa Rao, Ashok Kumar and former mining director Venkata Reddy.
The agency said the operation was part of an ongoing investigation into the movement of funds generated through alleged irregularities in sand mining activities. The case is being investigated under the Prevention of Money Laundering Act.
During the searches, officials reportedly seized unaccounted cash worth Rs 1.53 crore. Silver bullion valued at around Rs 1.30 crore was also recovered. In addition, investigators took possession of foreign currency, property documents, digital devices and several records linked to assets held by the accused and their family members.
The ED has also alleged that sand mining was carried out in violation of environmental regulations. According to investigators, excavation exceeded the permitted depth in several riverbed locations. The agency claims that guidelines issued by the Supreme Court and the National Green Tribunal were ignored, causing environmental damage and resulting in a substantial loss of revenue to the government.
A major aspect of the investigation revolves around contract violations. The ED has sought explanations regarding demand notices worth Rs 2,407 crore that were previously issued to the companies involved. Officials are now examining whether contract conditions were breached and whether the violations were deliberately overlooked.
The money laundering probe stems from a case originally registered by the Andhra Pradesh Anti-Corruption Bureau. Based on material gathered so far, the ED has indicated that the investigation will continue and that more details could emerge in the coming weeks..
