Ashok Leyland under ED scanner for alleged role in BS-IV vehicle scam

The Enforcement Directorate (ED) is investigating the alleged role of truck-maker Ashok Leyland in connection with the BS-IV scam, the agency said on Wednesday. This is apart from the properties worth Rs 22.10 crore it has seized of certain individuals and companies in connection with the scam.

The agency said that it has attached the said properties belonging to Diwakar Road Lines and Jatadhara Industries, which is controlled by former Telugu Desam Party MLA JC Prabhakar Reddy, C Gopal Reddy and Co, which belongs to Prabhakar Reddy’s close associate and a civil contractor of Tadipatri in Ananthapur district of Andhra Pradesh, and family members of both Prabhakar Reddy and Gopal Reddy under PMLA.

The case pertains to the illegal sale and registration of vehicles non-compliant to BS-IV emission norms. The ED stated that the Supreme Court had ordered on March 29, 2017, that vehicles that were non-compliant to BS-IV emission norms should not be sold by any manufacturer or dealer from April 1, 2017. It also prohibited registering authorities from registering such vehicles from April 1, 2017 onwards. 

It said that Jatadhara Industries and C Gopal Reddy and Co purchased BS-III vehicles from Ashok Leyland at discount and fraudulently registered the same as BS-IV vehicles by fabricating invoice copies. Upon investigation, they found that some of the registrations were done in Nagaland, Karnataka and Andhra Pradesh. 

ED said that it has gathered evidence in the form of fabricated invoices from RTO authorities in Nagaland, and original invoices issued by Ashok Leyland as scrap for some of these vehicles. The crime proceeds generated by owning and plying and/or selling these vehicles amounted to Rs 38.36 crore. 

The agency said that moveable properties to the tune of Rs 6.31 crore consisting of bank balances, cash, jewellery and receivables as well as 68 immovable properties amounting to Rs 15.79 crore belonging to Prabhakar Reddy, Gopal Reddy, and their family members have been attached. 

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