The Directorate of Enforcement (ED) conducted raids at eight locations in Hyderabad, targeting individuals involved in the alleged misuse of public funds under the Sheep Rearing Development Scheme (SRDS). The searches, conducted under the Prevention of Money Laundering Act (PMLA), focused on the premises of G Kalyan Kumar—Officer on Special Duty (OSD) to former Animal Husbandry Minister Thalasani Srinivasa Yadav—and various beneficiaries and middlemen. The ED probe stems from multiple FIRs lodged by the Anti-Corruption Bureau (ACB), including one accusing the ex-minister’s aide of forcibly removing official records after the change in government. Another FIR alleged that departmental officers siphoned off ₹2.1 crore meant for sheep suppliers by diverting payments to unrelated accounts.
An audit by the Comptroller and Auditor General (CAG) for 2021 highlighted alarming irregularities in just 7 out of Telangana’s 33 districts, pointing to losses of nearly ₹254 crore, including payment against fake invoices, sheep units issued to non-existent or deceased persons, and recycling of livestock to falsely claim subsidies. When extrapolated across the entire state, the estimated financial loss could exceed ₹1000 crore. The ED found that payments were made to individuals with no prior involvement in livestock trade, raising serious doubts about the authenticity of sheep procurement. Investigation revealed that several vendors were fake and the transactions were purely fraudulent, carried out to illegally divert government funds under the guise of legitimate welfare distribution.
During the raids, officials seized incriminating evidence, including transaction records indicating kickbacks to government functionaries. Over 200 suspected mule bank accounts linked to illegal online betting operations were uncovered, along with blank cheques, debit cards, and mobile phones—further pointing to a well-organized nexus of corruption and digital financial crimes. The discovery of fake vendors, bogus invoices, and coordinated fund diversions has widened the scope of the investigation, which is still ongoing.
