The Enforcement Directorate (ED) has intensified its investigation into the massive Sheep Rearing Development Scheme (SRDS) scam in Telangana, with the estimated irregularities exceeding Rs 1000 crore. The probe, which has gained momentum, has revealed a deep-rooted network of fraudulent activities where funds meant for genuine beneficiaries were siphoned off through bogus vendors, forged bills, and fictitious transactions, without the purchase or sale of a single sheep.

According to ED, the Comptroller and Auditor General’s (CAG) earlier audit had pegged losses at Rs 253.93 crore in just seven districts. On a proportionate basis, the loss across all 33 districts is likely to cross Rs 1000 crore. The ED’s findings confirm that substantial public funds were transferred to individuals and entities who had no history or involvement in the sheep trade. In many cases, these recipients were created solely to route and misappropriate government funds.

The investigation revealed a systematic recycling of sheep units, fraudulent claims of disbursement, and payments to fictitious vendors without any actual supply. ED officials stated that the modus operandi involved raising fake bills, operating ghost bank accounts, and routing funds through multiple channels to conceal the fraud.

In a major breakthrough, ED conducted searches at the residence of Kalyan, Officer on Special Duty (OSD) to former Animal Husbandry Minister Talasani Srinivas Yadav. The searches led to the seizure of passbooks of over 200 bank accounts, some linked to online betting platforms, 31 mobile phones and 20 SIM cards used for coordinating fraudulent transactions, ATM cards connected to over 200 fake accounts,Fake cheque books, passbooks, and documents indicating kickbacks.

The ED described the scam as a “well-orchestrated financial crime” involving both private individuals and government functionaries. Many accounts used for fund diversion were linked to suspicious or illegal activities, including online betting, raising concerns about potential money laundering.

The agency is now tracking the complete money trail, identifying all involved parties, and working on recovery of misappropriated funds. The ED has appealed to individuals with credible information about the scam to assist in the investigation. Further action, including prosecution of those involved, is expected as the probe progresses. If no action is taken, there is every possibility that the same may be repeated again.