Major Land Fraud Uncovered: ED Raids in Visakhapatnam Expose Rs. 200 Crore Scam Targeting Housing for Seniors & Orphans
(Judicial Quest News Network)
On October 19, 2024, the Directorate of Enforcement (ED) launched a series of search operations at five locations in Visakhapatnam, Andhra Pradesh, as part of a significant investigation under the Prevention of Money Laundering Act (PMLA), 2002. The operation is linked to a fraudulent scheme involving the illegal appropriation of 12.51 acres of government-allotted land valued at over Rs. 200 Crore, designated for housing for the elderly and orphans.
The investigation stemmed from an FIR filed at the Arilova Police Station against Gadde Brahmaji, Gannamaneni Venkateswara Rao, and MVV Satyanarayana, who are accused of forging signatures, fabricating sale documents, and using coercion to seize the land intended for compassionate housing projects.
Originally allotted in 2008 to M/s Hayagreeva Farms & Developers for the construction of cottages, this valuable land was officially registered in 2010 for approximately Rs. 5.63 Crore. However, records indicate that its market value was around Rs. 30.25 Crore at the time of the deed. After the accused illicitly acquired the land, they subdivided it and began selling it off in small plots starting in 2021, generating over Rs. 150 Crore in illicit profits.
The ED’s raids at the residences and offices of the suspects uncovered a trove of evidence, including digital devices and incriminating documents such as benami Pattadar Passbooks and more than 300 sale deeds linked to the accused and their families. The investigation also revealed cash transactions exceeding Rs. 50 Crore related to these property dealings. Further inquiries are ongoing as authorities work to unravel the full extent of this elaborate scheme.
