The alleged Andhra Pradesh mining irregularities case witnessed a dramatic escalation on Wednesday as the Enforcement Directorate (ED) launched coordinated searches across multiple cities, targeting companies and individuals linked to former senior mining official VG Venkata Reddy.
Raids Across Three Cities
The searches, carried out in Hyderabad, Jaipur, and Coimbatore, marked a major step forward in the investigation into alleged financial misconduct and irregularities in sand mining operations during the previous administration. Officials stated that the ED initiated the money laundering probe after taking cognisance of a case already registered by the Andhra Pradesh Anti-Corruption Bureau (ACB). Based on the ACB findings, the central agency registered an Enforcement Case Information Report (ECIR) and began tracing suspected financial transactions connected to the case.
Targeted Premises and Firms
Search teams examined premises associated with infrastructure firms including JPVL, GCKC Projects and Works Pvt Ltd, and Prathima Infrastructures Pvt Ltd, along with properties linked to Venkata Reddy, who formerly served as director of mines and geology and also headed the Andhra Pradesh Mineral Development Corporation (APMDC).
Background of the Controversy
The controversy dates back to allegations surrounding the state's sand mining policy and execution of contracts. The Andhra Pradesh government suspended Venkata Reddy in 2024 following accusations of serious procedural violations in sand tenders, mining permissions, and implementation of mining rules. Authorities also alleged that mandatory environmental safeguards and directions issued by the National Green Tribunal and the Supreme Court were ignored.
ACB Inquiry and Arrest
Following the suspension, the state government ordered a detailed ACB inquiry through GO Ms No. 61. Investigators later claimed that a nexus between officials and private firms caused a massive loss of nearly ₹2,566 crore to the state treasury. The probe further alleged that bank guarantees worth around ₹120 crore were released improperly, allegedly benefiting certain companies. The ACB earlier carried out searches at residences and offices linked to the accused before arresting Venkata Reddy in Hyderabad after he was reportedly unavailable to investigators for several weeks. The former official was subsequently produced before the Special ACB Court in Vijayawada and remanded to judicial custody.
ED Investigation Intensifies
With the ED now actively probing the case, investigators are expected to closely examine the money trail, financial transactions, and possible diversion of funds linked to mining contracts and sand operations. The coordinated raids signal a significant escalation in the enforcement action against alleged corruption in the state's mining sector.
