BS-IV vehicles ‘scam’: ED attaches assets worth over Rs 22 crore belonging to former TDP MLA, linked persons | The Financial Express

BS-IV vehicles ‘scam’: ED attaches assets worth over Rs 22 crore belonging to former TDP MLA, linked persons

The case emerges from a March 2017 ruling of the Supreme Court where it ordered that vehicles that were not compliant to BS-IV emission norms should not be sold in India by any manufacturer or dealer from April 1, 2017.

BS-IV vehicles ‘scam’: ED attaches assets worth over Rs 22 crore belonging to former TDP MLA, linked persons
The registration of such vehicles was also prohibited from the same date, the Enforcement Directorate said in a statement. (Photo source: IE)

The ED said Wednesday it has attached assets worth more than Rs 22 crore of former Andhra Pradesh TDP MLA J C Prabhakar Reddy, his associates and companies linked to them in a case related to an alleged BS-IV vehicles scam. Reddy is currently the chairman of the Tadipatri municipality located in Anantapur district of the state.

The case emerges from a March 2017 ruling of the Supreme Court where it ordered that vehicles that were not compliant to BS-IV emission norms should not be sold in India by any manufacturer or dealer from April 1, 2017. The registration of such vehicles was also prohibited from the same date, the Enforcement Directorate said in a statement.

Also read| Money laundering case: Court likely to pronounce order on bail plea of ex-Maha minister Nawab Malik

However, Jatadhara Industries Pvt Ltd (JIPL), “controlled” by Reddy and C Gopal Reddy (alleged to be a close associate of Reddy and a civil contractor from Tadipatri) and others in “contravention” to the apex court’s order purchased BS-III vehicles from Ashok Leyland Ltd at discount and “fraudulently” registered the same as BS-IV vehicles by fabricating the invoice copies, the federal agency alleged.

Also read| Delhi excise policy case: ED arrests 2 more businessmen earlier apprehended by CBI

A probe found that some of the registrations were done in Nagaland, Karnataka and Andhra Pradesh, it said.”ED has gathered evidences in the form of fabricated invoices from RTO authorities in Nagaland and original invoices issued by Ashok Leyland as scrap for the some vehicles and established the crime.

“The crime proceeds generated by owning/plying and/or selling these vehicles have been quantified as Rs 38.36 crore,” it said. Hence, movable properties worth Rs 6.31 crore, consisting of bank balances, cash, jewellery and receivables, as well as 68 immovable properties valued at Rs 15.79 crore belonging to J C Prabhakar Reddy, his family members, companies controlled by him like Diwakar Road Lines and Jatadhara Industries Pvt Ltd, and C Gopal Reddy and his family members have been attached after a provisional order was issued by the agency under the Prevention of Money Laundering Act (PMLA).The total value of the attached properties is Rs 22.10 crore. “Further investigation is in progress, including the role of Ashok Leyland in the entire scam,” the ED said.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 30-11-2022 at 14:50 IST