ED attaches properties worth `246 crore in Gutkha scam

New Delhi: The ED has attached properties worth Rs 246 crore in connection with its money-laundering investigation in the Gutkha scam case.

The attached properties include 174 immovable properties in Tamil Nadu, Puducherry, and Andhra Pradesh, worth around Rs 243 crore; and shares and vehicles worth around Rs 2.29 crore.

The Enforcement Directorate had initiated investigation under PMLA, after taking cognizance of a CBI FIR in the Gutkha scam after the High Court in Chennai had directed the probe agency to investigate illegal manufacture, import, supply, and distribution of Gutkha, which was banned in Tamil Nadu and Puducherry from May 2013.

The financial probe agency found that AV Madhava Rao, PV Srinivasa Rao, Tallam Uma Shankar Gupta and others had associated to illegally manufacture and sell Gutkha products in the souther state, with a turnover of Rs 639.40 crore between June 2013 to June 2016. The ED's investigation has revealed that the money from this trade was allegedly invested in the attached properties in Andhra Pradesh, Tamil Nadu, and Puducherry. The agency said that land was purchased through several companies such as Gayathri Realtors, Medha Diary Pvt Ltd, Vaijayanthi Spinners and other.

The agency added that three factories were also purchased to facilitate the illegal Gutkha business, in addition to purchasing vehicles to distribute their product.

The ED added that profits from the Gutkha business were also laundered by purchaing land and real estate in the name of the accused and their family members, in Guntur in Andhra Pradesh, Salem, Puducherry, and Chennai.