What Is the Telangana Sheep Rearing Scam? ED Raids Uncover Massive ₹1,000 Crore Fraud

The Enforcement Directorate (ED) has launched a major investigation into alleged financial irregularities under Telangana’s Sheep Rearing Development Scheme (SRDS), uncovering what could be a staggering ₹1,000 crore scam. The raids, conducted at multiple locations across Hyderabad, form part of a money-laundering probe under the Prevention of Money Laundering Act (PMLA).

The SRDS, introduced by the Bharat Rashtra Samithi (BRS) government in April 2017, was intended to provide sustainable livelihoods to shepherd families in Telangana. However, recent investigations suggest widespread misuse of public funds, fraudulent practices, and systemic lapses in scheme implementation.

Expanding Financial Losses

The scandal initially surfaced with FIRs filed by the Telangana Police Anti-Corruption Bureau (ACB) in December 2023, which cited ₹2.1 crore in alleged misappropriated funds. A subsequent Comptroller and Auditor General (CAG) audit, covering 7 of Telangana’s 33 districts until March 2021, estimated the financial damage at ₹253.93 crore.

Based on these findings, the ED now projects that losses across all districts could exceed ₹1,000 crore, highlighting the massive scale of the alleged fraud.

Audit Highlights Systemic Irregularities

The CAG report revealed multiple irregularities in the execution of the SRDS, including:

• Absence of proper records for individual beneficiaries.
• Fake or duplicate invoices for sheep transportation.
• Payments made using vehicle numbers unrelated to transport.
• Duplicate tags issued for sheep units.
• Allocation of units to deceased or non-existent beneficiaries.

ED officials describe these anomalies as evidence of a coordinated effort to siphon off government funds under the guise of a welfare initiative.

Political and Administrative Fallout

The ED raids targeted at least eight premises, including the residence of G Kalyan, Officer on Special Duty to former BRS minister Talasani Srinivasa Yadav. Earlier investigations led to the arrest of four government officials in 2024, indicating possible involvement of personnel close to senior political leaders.

The probe is ongoing, with the ED scrutinizing records from all 33 districts to determine the full extent of the financial irregularities. Authorities say the case exposes how a well-intentioned welfare program can be exploited for large-scale embezzlement.