FEMA Act case: ED sleuths grill TRS MLA for 2nd day

Hyderabad: The Enforcement Directorate sleuths on Wednesday grilled the TRS MLA from Ibrahimpatnam Assembly constituency Manchireddy Kishan Reddy for the second consecutive day in connection with a case of alleged violation of Foreign Exchange Management Act (FEMA).

The ruling party MLA appeared before the ED officials at the agency's regional office in Hyderabad. He was grilled by the ED officials for nine hours on Monday.

Sources said that Reddy reportedly appeared before the officials on the second day with records of his bank transactions. He was being questioned about the allegations that he diverted funds to Singapore and Australia in violation of FEMA. The MLA was booked by the ED for violating FEMA. He was Monday served notice by the ED directing him to appear before it for questioning.

The TRS leader was also questioned in August. According to the sources, the legislator was asked to show his financial transactions of 2015 over his alleged involvement in gambling casinos. The ED officials questioned the TRS MLA about his alleged investments in foreign countries and were trying to find out if those investments were made in the form of Hawala transactions. Meanwhile, Congress leader and former MLA Malreddy Ranga Reddy demanded a multi-agency probe against Kishan Reddy. He alleged that the MLA was involved in several financial irregularities and had stashed money abroad.