ED seizes properties in GATES case

Visakhapatnam

The Enforcement Directorate (ED) in Visakhapatnam has attached 13 properties worth Rs. 3.44 crore in connection with a money laundering case involving the General and Technical Education Society (GATES) in Gudivada, Andhra Pradesh. These properties, linked to the late Vemulapalli Venkateswara Rao, the former secretary of GATES, and his family, were seized under the Prevention of Money Laundering Act (PMLA), 2002.

The ED began its investigation after the Gudivada Police filed an FIR against Venkateswara Rao and others, accusing them of misappropriating GATES' funds. The investigation revealed that Rao and his family transferred valuable GATES properties at very low prices and concealed significant cash revenues from the society’s operations. This included collecting payments for renting auditoriums, security deposits, and inflated employee salaries, all in cash, with no official records.

This unaccounted cash, totaling Rs. 3.44 crore, was siphoned off and deposited into the personal accounts of the accused. The illicit funds were then used to purchase properties, including GATES’ assets, at underpriced rates. These properties have now been attached by the ED. The investigation is ongoing, with further actions expected.