ED Seizes ₹16.3 Crore Assets in Hyderabad Housing Society Money Laundering Probe
The Enforcement Directorate's Hyderabad unit has taken decisive action by provisionally attaching five immovable properties with a total value of ₹16.3 crore. This significant move comes under the stringent provisions of the Prevention of Money Laundering Act and is directly connected to an alleged cheating case involving office-bearers of the Vivekanand BHEL Employees Mutually Aided Cooperative House Building Society Ltd.
Details of Attached Properties and Key Individuals
The attached assets consist of open land parcels registered under specific names that have come under scrutiny. These properties are registered in the name of Tribha Ventures Private Limited, represented by P Govardhan Reddy, and D Srinivasa Rao, who serves as the president of the housing society. The provisional attachment represents a crucial step in the ongoing investigation to recover allegedly misappropriated funds.
Criminal Conspiracy and Police Investigation Foundation
The ED initiated its PMLA probe based on two FIRs previously registered by the Ramachandrapuram police of Cyberabad. These cases were filed under multiple sections including those related to cheating, criminal conspiracy, and violations of the Telangana Depositors Protection Act. The foundation of these cases stemmed from numerous complaints by society members who alleged systematic cheating, criminal breach of trust, diversion of deposits, and misappropriation of funds that were specifically collected for a housing project at Muthangi village.
In a significant development, police filed a comprehensive chargesheet in this case on July 1, 2025. This legal document names the society's president, treasurer, directors, and the builder as accused parties, charging them with diverting society funds and deriving unlawful gains through their actions.
Scale of the Alleged Financial Misappropriation
According to detailed findings by the Enforcement Directorate, the housing society, through its office-bearers, collected approximately ₹18 crore from 316 members. These funds were specifically intended for the allotment of residential plots and construction of houses as promised to society members. However, instead of utilizing this substantial amount for its stated purpose, the office-bearers, allegedly in conspiracy with Tribha Ventures, diverted and misappropriated the funds for personal benefit according to the agency's investigation.
Complex Fund Diversion Mechanisms Uncovered
The investigation has revealed sophisticated methods employed to divert funds from the society's legitimate purposes. Large sums were systematically transferred from the society's bank account to personal accounts belonging to the builder and other connected entities. The money laundering operation involved withdrawals through self-cheques and routing of funds through multiple third-party firms specifically to generate untraceable cash.
These diverted funds were subsequently used to purchase valuable land parcels, which were then fraudulently registered in the names of the builder and the society's president rather than being properly registered in the society's name as they should have been. This deliberate misregistration of assets forms a crucial part of the money laundering allegations being investigated by the Enforcement Directorate.
The case highlights significant vulnerabilities in cooperative housing society operations and demonstrates the ED's continued vigilance against financial crimes that affect ordinary citizens. The provisional attachment of properties represents an interim measure while the comprehensive investigation continues to unfold, with potential for further legal action against all parties involved in the alleged conspiracy.
