3 october 2024 : Cricketer-turned-politician Mohammad Azharuddin has been summoned by the Enforcement Directorate (ED) in a money laundering case linked to the Hyderabad Cricket Association (HCA).
The former HCA president is accused of misappropriating funds during his tenure. This marks the first time the Congress leader has been summoned to appear before the ED, with a required appearance scheduled for Thursday.
The case involves alleged misappropriation of ₹20 crore intended for the procurement of diesel generators, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium located in Uppal, Hyderabad.
In November 2023, the ED conducted searches under the Prevention of Money Laundering Act (PMLA), 2002, at nine locations in Telangana. The searches targeted the residences of Gaddam Vinod, Shivlal Yadav, and Arshad Ayub, who previously served as president, vice-president, and secretary of the HCA, respectively. Investigators also searched the office premises of SS Consultants Pvt. Ltd. and the home of its managing director, Satyanarayana.
These operations resulted in the recovery and seizure of digital devices, incriminating documents, and unaccounted cash amounting to ₹10.39 lakh. One search at Gaddam Vinod’s property revealed that it was functioning as an office for several companies owned by his brother, Gaddam Vivekanand, a former MP.
The ED’s investigation began based on three FIRs filed by the Anti-Corruption Bureau (ACB) in Hyderabad and related charge sheets that detailed the criminal misappropriation of ₹20 crore from the HCA.
The charge sheets allege significant irregularities in the procurement of diesel generators, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium. Despite set deadlines, several projects experienced substantial delays, resulting in increased costs and budget overruns, causing financial losses to the HCA.
Furthermore, the documents suggest that HCA officials, including its then-secretary, president, and vice-president, colluded with private parties to award various tenders and projects to favored vendors and contractors at prices higher than market rates, often without following proper tendering processes and sometimes even before receiving quotations. Many contractors received advance payments without completing any work.
The searches also uncovered incriminating documents indicating that Visaka Industries and its affiliated companies were regularly engaged in large cash transactions related to real estate activities. Instances of cash receipts from various individuals and adjustment entries in the books of these real estate companies to accommodate such transactions were noted in the seized documents.
