'Ghost Beneficiaries, Fake Bills': ED Raids Uncover Rs 1,000 Crore 'Scam' In Telangana Sheep Rearing Scheme

The ED uncovered Rs 1,000 crore scam in Telangana's Sheep Rearing Development Scheme, exposing fraudulent practices like fake beneficiaries and bills to divert funds meant for shepherd communities.

The ACB previously arrested 17 people in connection with the scam.

Source : ABPLIVE AI

The Enforcement Directorate (ED) has uncovered massive financial irregularities in Telangana’s Sheep Rearing Development Scheme (SRDS), exposing a scam worth over Rs 1,000 crore. Acting under the Prevention of Money Laundering Act (PMLA), 2002, the enforcement agency on July 30 conducted raids at eight locations in Hyderabad, including the residence of G Kalyan Kumar, Officer on Special Duty (OSD) to former Animal Husbandry Minister Thalassani Srinivas Yadav.

The searches were part of an ongoing investigation based on FIRs filed by the Anti-Corruption Bureau (ACB) in December 2023. While the initial ACB estimate placed the loss at Rs 2.1 crore, a Comptroller and Auditor General (CAG) audit up to March 2021 revealed irregularities worth Rs 253.93 crore in just seven districts. The ED now estimates the scam could have siphoned off more than Rs 1,000 crore across the state.

Modus Operandi: Ghost Beneficiaries & Fake Bills

Launched in 2017 under the Bharat Rashtra Samithi (BRS) government, the SRDS aimed to support the Golla and Kuruma shepherd communities by offering a unit of 20 sheep and one ram at 75% subsidy. Records show that over 1.28 crore sheep were distributed at a total cost of Rs 4,980.31 crore.

However, ED officials said the scheme was riddled with fraudulent practices — including fake transport receipts, benami accounts, and allocation of sheep units to deceased or non-existent individuals. "Huge amounts of public funds meant for rural upliftment were diverted using fictitious beneficiaries and fabricated bills," an ED source stated.

During Tuesday’s operation, investigators seized important documents, digital evidence, and significant amounts of unaccounted cash. Kalyan Kumar, the former minister’s aide, was questioned for over seven hours, and his statements have been recorded.

The ACB has already arrested 17 people, including Sabavath Ramachandran, former CEO of the Telangana Livestock Development Agency.

The investigation also led to the seizure of a large number of electronic devices, including 31 used mobile phones and over 20 SIM cards, reported The New Indian Express. Authorities suspect these items were used to coordinate and carry out the illegal activities connected to the case.