ED heat on BRS MLA’s brother in Rs 300-cr mining scam

While Telangana BRS MLA Gudem Mahipal Reddy has faced scrutiny before for illegal mining allegations, the recent Enforcement Directorate (ED) crackdown sharpens focus on his brother, Gudem Madhusudhan Reddy, bringing a fresh angle to the Rs 300 crore illegal mining saga.

Madhusudhan Reddy, proprietor of Santosh Sand and Granite Supply, stands at the centre of the probe for unauthorised mining operations that flagrantly violated environmental laws and government permits. The ED’s multiple raids across Madhusudhan’s properties uncovered concrete evidence of illegal excavation beyond leased quarry boundaries, resulting in a staggering Rs 39 crore loss in royalty payable to the Telangana government.

Despite orders to halt operations after environmental clearance issues, Madhusudhan Reddy’s firms allegedly continued mining activities unabated, highlighting a brazen disregard for legal restrictions. Authorities have seized assets valued at over Rs 80 crore linked to Madhusudhan Reddy, including benami (proxy) properties and cash, exposing a complex web of money laundering through shell companies and real estate investments.

Formerly arrested by local police on complaints of encroachment and illegal mining, Madhusudhan Reddy's involvement marks a new development in the ongoing investigation, spotlighting the family’s broader role in exploiting natural resources for illicit profit.

The ED probe underscores the systemic nature of illegal mining in Telangana and the nexus between political figures and illegal economic activities. Meanwhile, Mahipal Reddy has dismissed the allegations against his family as politically motivated, but the investigation intensifies as enforcement agencies continue to unearth new leads linked to Madhusudhan Reddy’s operations.