The Enforcement Directorate on Wednesday attached the properties worth Rs 22.10 crore from the companies of former MP J C Diwakar Reddy and his family. The case is related to the family purchasing scrap from Ashok Leyland and converting them into buses and finally getting them registered in Nagaland for operation as transport vehicles.
The ED, in a release said that they have attached the properties of firms connected to M/s Diwakar RoadLines and M/s Jatadhara Industries Pvt Ltd, controlled by J C Prabhakar Reddy, former MLA, M/s C Gopal Reddy and Co (belonging to his close associate Gopal Reddy, a civil contractor of Tadipatri of Anantapur district). They all belonged to the family members of Prabhakar Reddy and Gopal Reddy in an ongoing investigation being conducted under PMLA-2002 in the case relating to the BS-IV vehicles scam.
The ED said that the Supreme Court vide its order dated 29.03.2017, had ordered that vehicles that were not compliant to BS IV emission norms should not be sold in India by any manufacturer or dealer from 1st April2017 and that the registering authorities were also prohibited from registering such vehicles from 1st April2017 onwards.
However, M/s Jatadhara Industries Pvt Ltd (JIPL) and M/s C Gopal Reddy and Co in contravention to the aforesaid order purchased BS-Ill vehicles from Ashok Leyland Ltd at discount and fraudulently registered the same as BS-IV vehicles by fabricating the invoice copies. Investigation revealed that some of the registrations were done in Nagaland, Karnataka, and Andhra Pradesh.
The ED has gathered evidence in the form of fabricated invoices from RTO Authorities in Nagaland and original invoices issued by Ashok Leyland as scrap tor some vehicles and established the crime. The crime proceeds generated by owning/plying and/or selling these vehicles have been quantified as Rs 38.36 crore, the ED said.
As a result of the investigation and searches, movable properties to the extent of Rs. 6.31 crore consisting of bank balances, cash, jewellery, and receivables as well as 68 number of immovable properties to the extent of Rs. 15.79 crore belonging to J C Prabhakar Reddy and his family member and Gopal Reddy, and his family members have been attached.
Further investigation is in progress including the role of M/s. Ashok Leyland in the entire scam, the ED said in a release.