The probe is related to a Rs 200 crore alleged fraud with the Canara Bank in which the CBI had filed an FIR
Chennai: Sleuths from the Enforcement Directorate (ED) conducted searches at least 10 premises in Hyderabad and Chennai, which reportedly belong to G.R.K. Reddy of the MARG Group, declared a benami of V.K. Sasikala, an associate of Tamil Nadu late Chief Minister J. Jayalalithaa. The raids were conducted as part of the investigations into the alleged `200-crore bank fraud and benami assets probe against Sasikala, under the Prevention of Money Laundering Act (PMLA).
During their raids in Hyderabad, the ED officials reportedly inquired about Jayalalithaa's properties located at Medchal and obtained encumbrance certificate (ECs) to verify the transactions made on these properties.
The ED officials took up investigation into the Sasikala's benami assets and businessmen following the income-tax (IT) department’s attachments and the CBI having registered cases earlier. Some of the assets belonging to benami of Sasikala were attached and the case is still pending before the courts.
It was reported that the agency obtained information that a five-member partnership firm who runs a construction company had reportedly taken out some properties for development as a commercial project.
A first generation entrepreneur and alumni of Kellogs USA, G.R.K. Reddy began his career in 1985 as a merchant banker and gained expertise in advising and structuring financial closures.
Reddy’s MARG Group was founded in 1994 and has been one of the fastest-growing infrastructure companies with an order book of more than `3,000 crores. Reddy reportedly invested in several projects in Chennai, Vijayawada and Tirupati and purchased land in Hyderabad.
The benami episode of Sasikala came to light during the 2016 demonetisation after she invested `4 crore in the form of cash of demonetised denominations by purchasing a sugar factory in Tamil Nadu. The income-tax and CBI identified more than six benamis of Sasikala and attached `1,600-crore properties under the Benami Act.
