Illegal granite export issue resurfaces in Karimnagar

The illegal granite export issue in Karimnagar has resurfaced after Chief Minister A Revanth Reddy ordered a CID probe. Earlier investigations revealed tax evasion by several agencies, with penalties imposed, though full recovery of dues remains pending.

Karimnagar: The issue of illegal export of granite once again came to the fore with Chief Minister A Revanth Reddy announcing a CID probe into the alleged racket. Granite blocks from the district are being exported to China and other countries through different ports in Andhra Pradesh. In 2019, there were allegations that a few granite agencies exported granite blocks by evading tax.

Based on the complaint, Vigilance and Enforcement probed the allegations and found that nine granite agencies exported granite blocks by evading Rs 124 crore in tax. The Vigilance department, in its report, recommended imposition of a five-time penalty on the agencies, amounting to Rs 749 crore in total.

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Union Minister of State for Home Affairs Bandi Sanjay Kumar also lodged a complaint with the Union government in July 2019. In 2021, the Enforcement Directorate also probed the case.

The ED had initiated an investigation under the Foreign Exchange Management Act, 1999, into the export of granite blocks from Karimnagar to various countries through Kakinada and Krishnapatnam ports.

In this regard, it wrote a letter to Elite Shipping Agencies India Private Limited, Chennai, on July 14, 2021, seeking details of granite exported by the companies since inception till date.

The ED sought details of granite companies such as Swetha Agencies, AS Shipping, JM Baxi and Company, Maithili Aditya Transport, KVK Energy, Arvind Granites, Sandhya Agencies, PSR Agencies and Sri Venkateshwara Granites/Venkateswara Logistics.

On the other hand, stating that they could not pay such a huge amount, granite export agencies requested the then government for an exemption. Responding positively to the request, the government agreed and issued a memo in this regard. Though some amount was paid, the government reportedly did not receive the total amount.