The Enforcement Directorate has provisionally attached assets worth ₹246 crore in connection with the Gutkha scam case.
They include 174 immovable properties located in Tamil Nadu, Puducherry and Andhra Pradesh, having a total market value of ₹243.80 crore. Assets in the form of shares and vehicles worth ₹2.29 crore have been attached.
The ED's money laundering probe against unknown officials of the State and Union governments, public servants and others is based on an FIR registered by the Central Bureau of Investigation on the direction of the Madras High Court.
The CBI was directed to investigate all aspects of the alleged offences of illegal manufacture, import, supply, distribution and sale of “gutkha” and other chewable tobacco products that were banned in Tamil Nadu and Puducherry with effect from May 2013.
Promoters involved
Investigations revealed that the three Jayam industries promoters A.V. Madhava Rao, P.V. Srinivasa Rao and Uma Shankar Gupta, besides others, were allegedly involved in the illegal manufacture, sale and distribution of “gutkha” products in Tamil Nadu. The turnover was ₹639.40 crore from June 2013 to June 2016.
It is alleged that the ill-gotten money was invested in movable and immovable properties in Tamil Nadu, Puducherry and Andhra Pradesh. Bribes were paid to the officials.
According to the ED, land had been purchased in the name of several companies, including Gayathri Realtors, Medha Diary Private Ltd. and Vaijayanthi Spinners. Three factory premises were acquired in the names of relatives and employees.
The accused persons bought parcels of land in their name and that of their relatives. A part of the funds was invested in the shares of Goutham Buddha Textile Park, Guntur, and vehicles bought for the sale and distribution of “gutkha” products, the agency added.
