Wool-Gate Scandal: Hyderabad ED Cracks Down on Bogus Sheep Scheme Payments
(Judicial Quest News Network)
Hyderabad, 01, August,2025-In a major crackdown on alleged financial fraud, the, Directorate of Enforcement (ED), Hyderabad Zonal Office, conducted search operations on July 30, 2025, across eight locations in Hyderabad under the Prevention of Money Laundering Act (PMLA), 2002.
The raids are linked to serious irregularities in the implementation of the Sheep Rearing Development Scheme (SRDS)—a flagship initiative of the Telangana government.
Key Targets of the Raids G. Kalyan Kumar, Officer on Special Duty (OSD) to former Animal Husbandry Minister Thalasani Srinivasa Yadav Several beneficiaries and middlemen identified during the ED’s probe Origins of the Investigation the ED launched its inquiry based on FIRs filed by the Anti-Corruption Bureau (ACB), Hyderabad. One FIR alleged that following the change in government, the OSD forcibly removed departmental records. Another FIR, filed by a sheep merchant, claimed that ₹2.1 crore due for sheep supply was diverted by departmental officials to unrelated accounts.
Audit Revelations the Comptroller and Auditor General (CAG) audit for the period ending March 2021 exposed alarming discrepancies:
No beneficiary-wise records maintained. Payments made against fake transportation invoices
Use of non-transport vehicle registration numbers. Duplicate sheep tags and allotments to deceased or fictitious individuals. The audit, covering just 7 out of 33 districts, pegged the loss at ₹253.93 crore. Extrapolated statewide, the estimated loss could exceed ₹1000 crore.
Bogus Vendors & Phantom Transactions ED’s investigation revealed that large sums were transferred to individuals/entities who had no prior involvement in sheep trading. No actual sale or purchase of sheep occurred, indicating that government funds were funnelled into fake accounts. The scheme allegedly involved recycling of sheep units to fraudulently claim repeated disbursements.
Seizures & Digital Trail The raids led to the recovery of documents linked to 200+ suspected mule bank accounts blank cheques, passbooks, debit cards 31 mobile phones and 20+ SIM cards, suspected to be used in illegal online betting operations
What’s Next? The ED has seized incriminating evidence pointing to kickbacks to officials and systemic misuse of public funds. The investigation is ongoing, with further revelations expected to emerge as forensic analysis of seized materials continues.
