Enforcement Directorate Raids Locations in Telangana, Unearths Financial Irregularities
Probe into Circumvention of Funds Involving Dr. G. Vivek and Companies
In a significant move, the Directorate of Enforcement (ED) conducted searches under the provisions of the Foreign Exchange Management Act (FEMA), 1999, at four locations in Telangana on 21.11.2023. The searches targeted residences and office premises, revealing suspicious financial transactions and potential FEMA contraventions.
The residences of Dr. Gaddam Vivekanand in Hyderabad, the office premises of Visaka Industries Ltd. in Hyderabad, and Vigilance Security Services Pvt. Ltd. at Ramagundam were among the locations subject to ED searches. Dr. G. Vivek was also found at his temporary residence in Hitech City, Mancherial.
The ED initiated the investigation based on a reference from Telangana Police concerning an Rs. 8 Crore transaction from Dr. G. Vivek’s bank account to M/s Vigilance Security. The subsequent investigation uncovered circuitous money transfers with no clear business rationale. Dr. G. Vivek, his wife, and Visaka Industries were found to have transactions exceeding Rs. 100 Crore with M/s Vigilance Security.
Additionally, the investigation revealed FEMA contraventions by M/s Vigilance Security Services Pvt. Ltd. and its parent company, Yeshwant Realtors, majority-owned by a foreign national. Prima facie, FEMA violations were also identified in the incorporation of an entity by Dr. G. Vivek in a foreign tax haven.
Search operations led to the recovery and seizure of digital devices and incriminating documents indicating suspicious and unaccounted transactions, along with the use of unaccounted cash in property deals. The seized documents further revealed large-scale Inter-Corporate Deposits within group companies with no legitimate business, yet holding substantial land assets. The searches also confirmed the questionable nature of M/s Vigilance Security Services Pvt. Ltd., which was found non-existent at its declared addresses.
The ED’s investigation is ongoing, delving into the financial irregularities and potential violations uncovered during the searches.
