Andhra pradesh: Cobrapost stings Minister, doctor and banks

Udumula Sudhakar Reddy
Primary education minister Mr. S Sailajanath is in the thick of the controversy after ‘Cobrapost’, an investigative website, in a sting operation exposed his alleged role in money laundering irregularities involving banks too.
Cobra post on Monday revealed that the Minister was the standard guarantor for Rs 25 crore to be invested in the real estate project in the name of his friend Dr. P Hariprasad an orthopedic surgeon running Balaji Orthopedic and Trauma Hospital at Tirupati. It has released the videos after conducting sting operation in Delhi, UP, Haryana, Rajasthan and Andhra Pradesh for six months. 

The investigation claimed that these hawala transactions the  financial institutions and their managements are violating several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money Laundering Act.
Cobra post journalist Syed Masroor Hasan approached Dr Hariprasad through a banker that he wanted to invest a ‘Delhi based minister’s non existing black money of Rs 25 crore in AP.  The post recorded the conversations of the Minister Sailajanath, his friend Hariprasad, a former inspector of police of Crime Investigation Department Mr. K Srinivasa Rao, Indian Bank AGM Mr. R Manohar and two territory managers of Reliance Life Insurance in Hyderabad and Delhi.
Cobra post alleged ,” The banker in question is R. Manohar, in his zeal to net such client with deep pockets as our to-be-found-nowhere minister who could put on his table Rs. 25 crore of unaccounted cash, Manohar guided the Cobrapost investigative journalist, Syed Masroor Hasan, to Dr. H. Prasad, an orthopedic surgeon from Tirupati who wants “our minister”(the character created by the investigating journalist) to invest his crores of black money in his real estate project. We are invited to Hyderabad where we meet Vasu, who claims to be a former Andhra cop. He would help us deliver Rs. 25 crore to Dr. Prasad at Tirupati for his project through his racket. Our next port of call is S. Sake, who is Minister of Primary Education with the Andhra Pradesh government, with nine other departments under his charge, which shows the power he wields. Sake stands guarantor for the safety of our black money investment in Dr. Prasad’s real estate project. This helps us uncover a nexus between the banker and the hawala racket without any fear of law, with active patronage of our political masters,”
Minister Sailajanath while refuting allegations of money laundering against him said he only gave 'Matasayam'(oral help) as he knew Dr Hari Prasad as junior in Kurnool medical college.
"Doctor Hari is a good man and he was my junior in KMC. When they came to me I told them they can trust him," said Sailajanath. He added,”I was told Dr Hari didn’t take the loan amount,”
“I  did nothing wrong in the connection. And I tried to help my close friend and also junior Dr.Harikrishna Prasad, who approached me seeking oral help to get Rs.25 crore by pledging his site towards development, Mr.Sailajanath stated and adding that Harikrishna Prasad brought a person Rajesh to him to extend oral support to get loan.
        “How do they use my name for money laundering issue for advising the lender verbally to sanction loan on property,” The primary education minister alleged the controversy was made to tarnish his political image and claimed himself with clean hands.
Dr P Harikrishna says ,”Indian Bank AGM at Delhi Mr. R Manohar is my brother in law who introduced me these people as lenders who give loans after mortgaging the property. I was working on a setting up a hospital in Mahdapur or Banjara Hills in Hyderabad for the past six months. I was looking for loans. I also want to do some real estate projects if I get enough money. This man identifying as ‘Rajiv’(now turned out to be a cobrapost journalist) came to me and offered loan at the interest rate of one rupee. So we were discussing this. He insisted on some noted personality to vouch for me. So I requested Sailajanath sir who was my senior in the college to vouch for me. Minister is no way concerned with any other aspect in this. I also didn’t receive any loan from them. It was only in discussion stage,”
When asked why does he need Rs 25 crore for setting up the hospital Dr Harikrishna said ,”If we ask big amount of loan at least we get some of it. I met them in Delhi and they also came to Hyderabad and met the us and I took them to the minister,”
CID inspector of Police Mr Srinivasa Rao alias Vasu whom the Cobrapost alleged as ‘hawala operator’ denied the allegation and said ,”I have quit the CID inspector job eight years ago and I am into real estate and civil construction. Hariprasad is good friend of mine who comes for advices and clarifications. Casually on that day he came to office with another person’s when they were discussing about the loan he sought my opinion. I just gave my opinion on legalities involved as I am also an advocate. It is false to say that I am involved in Hawala operations,”
Cobrapost claimed that the “Money laundering practices are part and parcel of banking and insurance business across the board.  Even a walk-in customer can avail of such services that help him launder all his unaccounted cash,” 
 “K. Madhumathi, Territory Manager Reliance Life, Hyderabad was found on video released by Cobrapost saying “See many of my clients they give cash because they cannot invest directly through cheque because its ….”“Yesterday evening only I picked up one 50 lakh cash … aapke jaisa hi … he was not a politician but a businessman … very big businessman … toh unko kya hai ki his name should not come out …Because we block the names … because customer ka naam bahar nahi aana chahiye  … name aane se ek baar Income Tax ko pata chal jayega na toh un logon ki life kharab kar denge …,”
““Croron ka karte hain bhai sahib … ek crore to bahut chota amount hai … hum log yahan 50 crore 80 crore ka karte hain … ,” M. Raghu, Territory Manager, Reliance Life Insurance, Chandrasekhar sales manager Hyderabad was also caught on camera.