The Enforcement Directorate on Wednesday conducted raids at multiple locations in Hyderabad as part of a money-laundering investigation into a major scam under the Sheep Rearing Development Scheme (SRDS). The scheme, launched by the Bharat Rashtra Samithi (BRS) government in April 2017, aimed to provide sustainable livelihoods to shepherd families across Telangana. However, the ED now believes the scheme was marred by massive financial irregularities and abuse of public funds.
The searches were conducted under the Prevention of Money Laundering Act (PMLA) and covered at least eight premises linked to alleged middlemen and beneficiaries. One of the locations included the residence of G Kalyan, Officer on Special Duty to former BRS minister Talasani Srinivasa Yadav.
From ₹2.1 Crore to ₹1,000 Crore: The Expanding Loss Trail
Initial FIRs filed by the Telangana Police Anti-Corruption Bureau (ACB) in December 2023 cited ₹2.1 crore as the “proceeds of crime.” However, a Comptroller and Auditor General (CAG) audit for the period ending March 2021 revealed far deeper financial damage. The audit, which covered only 7 of Telangana’s 33 districts, pegged the estimated loss to the state exchequer at ₹253.93 crore.
On this basis, the ED has projected the total loss across all districts could exceed ₹1,000 crore. The CAG audit findings have significantly broadened the scope of the ED’s money-laundering probe.
Audit Reveals Shocking Irregularities in Scheme Execution
According to the CAG report, the SRDS suffered from systemic irregularities that facilitated fraud. These include:
- No proper maintenance of beneficiary-wise records.
- Fake or duplicate invoices for transportation of sheep.
- Payments made against invoices with vehicle registration numbers of passenger or non-transport vehicles.
- Duplicate tags allotted to sheep units.
- Allotment of units to dead or non-existent individuals.
These glaring anomalies point to a coordinated effort to siphon off government funds under the guise of a welfare scheme, sources within the ED said.
Political Fallout and Ongoing Investigations
The origins of the ED probe lie in FIRs filed by the ACB, which led to the arrest of four government officials in early 2024. The involvement of officials close to senior BRS leaders has added a political dimension to the scandal. The searches and investigation are expected to intensify, with ED sources confirming they will continue scrutinizing transactions and records from all 33 districts.
While the full scope of the scam is still being mapped, the ED’s findings suggest that a well-intentioned welfare scheme was turned into a vehicle for large-scale embezzlement, with losses that could exceed ₹1,000 crore.