TELANGANA: Rs.700 Cr Sheep Scam: ED Raids Uncover Telangana Fraud
Enforcement Directorate Intensifies Probe
On July 30, 2025, the Enforcement Directorate (ED) conducted searches at six locations in Hyderabad, targeting residences and offices linked to the alleged Rs 700 crore sheep distribution scam. Key figures under scrutiny include former Animal Husbandry Department Director Sabavath Ramachander and prime accused Moinuddin. The raids follow an Anti-Corruption Bureau (ACB) investigation that exposed significant financial irregularities.
Origins of the Sheep Distribution Scheme
Launched in 2015 by the then Bharat Rashtra Samithi (BRS) government, the Sheep Rearing Development Scheme (SRDS) aimed to bolster rural livelihoods by distributing over 1.28 crore sheep to 3.92 lakh beneficiaries. With an expenditure of Rs 4,980.31 crore, the scheme provided subsidized livestock to shepherd communities. However, investigations revealed systemic fraud from its inception.
Financial Misappropriation Uncovered
The ACB’s probe, initiated in December 2023, identified a Rs 700 crore scam involving inflated procurement bills, fake transportation records, and benami accounts. Funds meant for vendors were diverted to fictitious accounts, with officials and middlemen allegedly colluding to siphon off profits. A Comptroller and Auditor General (CAG) report estimated losses at Rs 253.93 crore in seven districts, projecting a potential statewide loss exceeding Rs 1,000 crore.
Key Accused and Investigative Actions
The ED’s searches targeted individuals like Sabavath Ramachander, former managing director of the Telangana State Sheep and Goat Development Cooperative Federation, and Moinuddin, a suspected mastermind. The agency seized substantial cash and documents, with Moinuddin previously detained by the ACB in May 2025. The ED’s probe, initiated under the Prevention of Money Laundering Act (PMLA) in June 2024, builds on ACB findings.
Modus Operandi of the Scam
Investigations revealed that officials fabricated records to show payments to nonexistent vendors, with funds funneled into benami accounts. The CAG audit highlighted irregularities such as duplicate sheep tags, allocations to deceased or fictitious beneficiaries, and the use of passenger vehicles for livestock transport. These discrepancies facilitated large-scale embezzlement, undermining the scheme’s objectives.
Broader Implications and Ongoing Scrutiny
The scam’s exposure has raised questions about oversight in government welfare programs, with allegations implicating senior officials and political figures. The ED and ACB are probing potential involvement of higher authorities, including former minister Talasani Srinivasa Yadav’s aide, G. Kalyan Kumar. The investigation aims to ensure accountability and recover misappropriated funds.
Future Outlook for Accountability
With 17 arrests made so far, including key officials and middlemen, the investigation signals a robust crackdown on corruption. The ED’s ongoing efforts, supported by detailed financial trails, aim to dismantle the network behind the fraud. This case underscores the need for stringent monitoring mechanisms in large-scale public welfare initiatives.