In a major development linked to the controversial sheep distribution scheme, the Enforcement Directorate (ED) carried out raids at six different locations across Hyderabad on Wednesday, July 30. The crackdown is part of a money laundering investigation into the alleged ₹700 crore scam that unfolded during the tenure of the former Bharat Rashtra Samithi (BRS) government. Raids were conducted at the residences and offices of former Animal Husbandry Director Ram Chander Naik, the scheme’s alleged mastermind Moinuddin, and others connected to the irregularities. This high-profile probe, which began with the Anti-Corruption Bureau (ACB), was transferred to the ED after the magnitude of financial fraud came to light.
The sheep distribution scheme, launched in June 2017 by then Chief Minister K. Chandrashekar Rao, aimed to uplift traditional shepherd communities such as the Golla and Kuruma by providing subsidized livestock. Under the initiative, each unit comprising 20 sheep and one ram was priced at ₹1.25 lakh, with the state covering 75% of the cost. While intended to boost the rural economy, the scheme was riddled with malpractices from the start. Investigators uncovered that numerous beneficiaries were fake, and in many cases, the sheep were either not delivered at all or delivered in fewer numbers than claimed.
Probes revealed an elaborate network of corruption involving middlemen, senior officials, and shell companies. Fake bills, benami bank accounts, and ghost suppliers were allegedly used to siphon off massive funds meant for the rural poor. The ED is now scrutinizing financial trails, suspecting widespread diversion of government funds. With the spotlight once again on corruption under the previous regime, political tensions are likely to escalate in Telangana. Meanwhile, more arrests and legal actions are expected as the investigation deepens.