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Tuesday, June 25, 2024

ED raids uncover financial irregularities involving Dr G Vivekanand & Companies in Telangana

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Hyderabad: The Directorate of Enforcement (ED) carried out searches under the provisions of the Foreign Exchange Management Act (FEMA), 1999, at four locations in Telangana.

Further searches were conducted at Dr. Vivekanand’s temporary residence in Hitech City, Mancherial, where he was located. The ED launched an investigation based on a reference from the Telangana Police regarding a transaction of Rs eight crore from Dr. G. Vivek’s bank account to M/s Vigilance Security, a statement said on Wednesday.

The targeted areas included the residences of Dr Gaddam Vivekanand in Hyderabad, the office premises of Visaka Industries Ltd. in Hyderabad, and Vigilance Security Services Private Limited in Ramagundam.

The ED’s inquiry revealed that the bank account of M/s Vigilance Security was used for circuitous money transfers lacking a genuine business rationale. Dr G Vivek, his wife, and their company, Visaka Industries, were found to have transactions exceeding Rs. 100 crore with M/s Vigilance Security.

M/s Vigilance Security declared only Rs 20 lakhs as ‘revenue from operations’ in its latest balance sheet while reporting assets worth Rs 64 crore, primarily in the form of long-term loans/advances.

The company’s impugned bank account showed credit and debit transactions totaling more than Rs. 200 crore since its inception. The investigation also indicated Dr G Vivek’s indirect control over M/s Vigilance Security.

The ED’s investigation revealed apparent FEMA contraventions by M/s Vigilance Security Services Private Limited. and its parent company, Yeshwant Realtors, whose majority shares are held by a foreign national. Prima facie, FEMA violations were also observed in the incorporation of an entity by Dr G Vivek in a foreign tax-haven country.

The search operations resulted in the recovery and seizure of digital devices and incriminating documents, pointing to suspicious and unaccounted transactions worth several crores, as well as the use of unaccounted cash in property deals. Seized documents also unveiled large-scale Inter-Corporate Deposits within group companies, lacking legitimate business but holding substantial land assets.

Searches confirmed the alleged bogus nature of M/s Vigilance Security Services Private Limited, which was found non-existent at its declared addresses.

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