The Enforcement Directorate (ED) on Wednesday conducted simultaneous searches at the residences and offices of YSR Congress Party leader and former MLA Malla Vijay Prasad in connection with an alleged financial fraud involving nearly Rs 3,000 crore.
The searches were carried out at five locations across Hyderabad and Visakhapatnam by teams of ED officials, reportedly from the agency’s Bihar unit.
The raids targeted properties linked to Vijay Prasad, who serves as the YSRCP coordinator for the Visakhapatnam West Assembly constituency and is also the chairman of the Welfare Group of Companies.
According to preliminary information, the investigation relates to allegations of large-scale financial irregularities involving the collection and diversion of public deposits by the company.
Investigators suspect that funds mobilised from depositors were diverted in violation of regulatory norms, resulting in estimated financial losses of around Rs 3,000 crore.
During the searches, ED officials examined residential premises and corporate offices and scrutinised financial records, bank account details, digital storage devices, hard disks and other electronic evidence that could be relevant to the investigation.
The raids generated considerable political and business interest because of Vijay Prasad’s position within the YSR Congress Party.
Malla Vijay Prasad was elected as an MLA in 2009 and later contested the 2019 Andhra Pradesh Assembly elections from the Visakhapatnam West constituency as a YSRCP candidate.
In 2021, he was appointed chairman of the Andhra Pradesh Education and Welfare Infrastructure Development Corporation. He currently serves as the YSRCP coordinator for the Visakhapatnam West constituency.
