Mohammad Azharuddin summoned by ED in money laundering case

Cricketer-turned-politician Mohammad Azharuddin was summoned by the Enforcement Directorate (ED in money laundering case linked to Hyderabad Cricket Association (HCA). Former Hyderabad Cricket Association president Mohammad Azharuddin.(PTI file)

Mohammad Azharuddin, the former president of the HCA, is accused of misappropriating funds during his tenure. This is the first summons issued to the Congress leader, requiring him to appear before the ED on Thursday. The former India captain, however, didn’t appear in the office and sought time.

The case pertains to alleged misappropriation of ₹20 crore, allocated for the procurement of diesel generators, firefighting systems, and canopies for the Rajiv Gandhi Cricket Stadium in Hyderabad's Uppal.

This is the first time the Congress leader has been summoned by the probe agency, with instructions to appear before the agency to clarify his role in the financial transactions under scrutiny.

In November 2023, the ED had conducted searches under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 at nine locations in Telangana. The searches were conducted at the residences of Gaddam Vinod, Shivlal Yadav and Arshad Ayub, who served as president, vice-president, secretary of the Hyderabad Cricket Association, respectively in the past. Searches were also conducted on the office premises of SS Consultants Pvt. Ltd. and the residential premises of its MD, Satyanarayana.

Search operations resulted in the recovery and seizure of digital devices, incriminating documents and unaccounted cash of ₹10.39 lakh. Search at one of the premises of Gaddam Vinod revealed that it was being used as an office for several companies owned / controlled by his brother Gaddam Vivekanand, former MP.

The ED initiated investigation on the basis of three FIRs registered by the Anti-Corruption Bureau (ACB), Hyderabad, and the corresponding charge sheets filed by the ACB relating to criminal misappropriation of the funds of the Hyderabad Cricket Association to the tune of Rs. 20 Crore.

The charge sheets contain allegations of serious irregularities in the procurement of DG sets, firefighting systems and canopies for Rajiv Gandhi Cricket Stadium constructed in Uppal, Hyderabad.

As per the charge sheets, despite deadlines, several works were delayed inordinately leading to escalated costs and budget enhancements and corresponding losses to the Hyderabad Cricket Association.

It was also revealed that the office bearers of the HCA, including its then secretary, president and vice-president and others, in collusion with private parties, arbitrarily got various tenders and works allotted to preferred vendors/contractors at higher than market rates without following proper tender processes and in many cases even before the receipt of quotations. Advance payments were made to many contractors but no work was done by them.

Searches at the said premises also led to seizure of incriminating documents which reveal that the Visaka Industries and its group companies have been regularly indulging in large value cash transactions and cash payments related to their real estate activities. Further, several instances of receipt of cash from various persons and passing of adjustment entries in such real estate companies’ books for accommodating such transactions have been noticed from the seized documents.

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