The Enforcement Directorate on Monday said it has attached assets worth Rs 246 crore in connection with a money laundering probe into the Gutkha scam.
Attached assets in the case include 174 immoveable properties in Tamil Nadu, Puducherry and Andhra Pradesh, with market value of Rs 243.80 crores and moveable properties in the form of shares and vehicles worth Rs 2.29 crores, the ED said.
The ED had initiated investigation under the provisions of Prevention of Money Laundering Act (PMLA) in the Gutkha scam against unknown officials of State and Central Government, public servants and others based on an FIR filed by the CBI.
CBI had registered the case following a directive from Chennai High Court to conduct investigation into all aspects of the offence of illegal manufacture, import, supply, distribution and sale of Gutkha and other chewable tobacco products which were banned in the Tamil Nadu and Union Territory of Puducherry with effect from May 2013.
"Investigation under PMLA revealed that accused AV Madhava Rao, P.V.Srinivasa Rao, Tallam Uma Shankar Gupta and others had associated in illegal manufacture, sale and distribution of Gutkha products in Tamil Nadu with a turnover of Rs 639.40 crore from June 2013 to June 2016 and the ill- gotten money derived out of the criminal activities were invested in moveable and immoveable properties in Andhra Pradesh, Puducherry and Tamil Nadu," the ED said in a statement.
The criminal activity related to the payment of bribes to the Central and State Government officials as quid pro quo for allowing the illegal business of Gutkha and other tobacco products which are banned in the State of Tamil Nadu. The above criminal activity is related to the Scheduled offence under PMLA and therefore, the properties acquired by means of illegal manufacture and sale of Gutkha resulting from such criminal activity were consequently liable for attachment, the ED said.
Investigation further revealed that investments made by the accused were in land purchased in the name of Gayathri Realtors, Medha Diary Private Limited and Vaijayanthi Spinners, among others sourced through cash generated out of the sale proceeds of the illegal Gutkha business.
Three factory premises were also acquired by the accused in the names of relatives / employees during the period to facilitate smooth running of their illegal Gutkha business. Further, out of the profits of Gutkha business, personal investments were made by accused persons for purchase of land in their name and in the name of family members / relatives.
Besides, shares were purchased in Goutham Buddha Textile Park, Guntur and vehicles were purchased for the sale and distribution of Gutkha products. The major investments in real estate made by the accused were in Guntur District of Andhra Pradesh apart from investments in Salem, Puducherry and Chennai.
"These assets consist of 174 immoveable properties and moveable properties totalling to Rs 246 crores have been provisionally attached under PMLA," added the agency.