ED Raids: Funds from Chinese Entities Named In Panama Leaks Routed To Granite Firms

ED which had conducted searches at the offices & residential premises of Swetha Granites & other agencies in Karimnagar & Hyderabad to investigate & unearth FEMA Violations. seized unaccounted cash of Rs 1.08 Cr & various incriminating documents, and digital media. The Illegal funds sent from a Chinese entity, which was owned by a man named in the leaked Panama Papers, were sent to Telangana-based granite businesses including that of Telangana Welfare Minister Gangula Kamalakar, the  ED claimed on Friday.

The ED, however, did not name Kamalakar in the statement.

Directorate of Enforcement (ED) has conducted searches at offices and residential premises of  Swetha Granites, Swetha Agencies, Sri Venkateshwara Granites Private Limited, PSR Granites Private Limited,  Arvind Granites, s Giriraj Shipping Agencies Private Limited and their related entities in Karimnagar and Hyderabad on 9th & 10th November 2022 to investigate and unearth evidences pertaining to FEMA Violations.

The above entities are exporting rough granite blocks to China, Hong Kong S.A.R, China and other countries. During the course of inquiries, it was found that exported quantity was more than the quantity on which royalty was paid and there was underreporting of quantity while exporting. In many instances, the export proceeds are not realized in the declared bank accounts, thereby, indicating that the export proceeds are received through other than banking channels.

During the search action, the ED search teams found and seized unaccounted cash of Rs. 1.08 Crore, allegedly received in Hawala against exports, and also seized voluminous granite dispatch data of 10 years from the quarries. During the search action, the ED search teams also found multiple benami bank accounts held in the name of employees of granite exporters, in which cash received against the illegal granite exports was being deposited.  Search action also led to the detection of money being routed back from Chinese entities into Indian entities in the form of hand loans without documents.

These Chinese entities are owned by Li Wenhuo, whose name appeared in Panama leaks.   

Also Read: FEMA Case: After Gangula, TRS MP Vaddiraju Under ED Radar

ED Investigation on illegal granite mining and FEMA violations has been initiated on the basis of a report of Vigilance & Enforcement Dept of State Government where in large scale evasion of Seigniorage fee on granite blocks transported from the quarry lease areas of Karimnagar District to the Sea Ports by Railways was detected and demands for the evaded royalty were raised but not paid by the exporters.
Further investigation is under progress the ED stated in the press release.

Also Read: Telangana Minister Gangula Kamalakar To Cut Short Dubai Trip After Sudden ED, IT Raids