Telangana’s ₹1000 Crore Sheep Scam: ED Uncovers Widespread Fraud Across State
The Enforcement Directorate (ED) has raised concerns that a scam worth over ₹1000 crore may have been committed under this scheme across the state.
Hyderabad: Large-scale financial irregularities have come to light in the Sheep Rearing Development Scheme (SRDS) in Telangana. The Enforcement Directorate (ED) has raised concerns that a scam worth over ₹1000 crore may have been committed under this scheme across the state.
An audit by the Comptroller and Auditor General (CAG) found a loss of ₹253.93 crore in just 7 districts. Following this, the ED launched investigations in all 33 districts of Telangana to uncover the full scale of the scam. According to the ED, the total fraud may exceed ₹1000 crore.
The ED stated that more than 200 suspected dummy or “mule” bank accounts—linked to illegal online betting applications—have been identified. These accounts were allegedly used for the unlawful transfer of government funds.
On July 30, 2025, the ED conducted raids at eight locations in Hyderabad, including premises linked to G. Kalyan Kumar, the Officer on Special Duty (OSD) to former Animal Husbandry Minister Talasani Srinivas Yadav.
Investigations revealed that several individuals and entities to whom payments were made for the supply of sheep had no prior involvement in sheep trading. These beneficiaries made no genuine purchases or sales of sheep under the scheme.
The ED discovered that fake vendors were paid, and the same sheep units were reused to falsely claim government subsidies. This points to a systematic model of fraud in which public funds were funneled into bogus accounts.
During the raids, the ED recovered key evidence, including documents showing kickbacks to government officials and others. Additionally, they seized several bank account records, blank cheque books, passbooks, debit cards, 31 mobile phones, and over 20 SIM cards, which are suspected to have been used in illegal activities.
The ED has described the case as a serious financial fraud involving the misuse of government funds and money laundering through fictitious entities. A full-scale investigation is underway, with more arrests and further action likely.
