Fri Aug 01 12:21:30 UTC 2025: Okay, here’s a summary and a rewritten news article based on the provided text, from an Indian perspective:

**Summary:**

The Directorate of Enforcement (ED) is investigating a major fraud in the Telangana government’s Sheep Rearing Development Scheme (SRDS). Funds intended for beneficiaries were allegedly diverted to individuals with no prior involvement in livestock trade. ED raids uncovered evidence of kickbacks, fake accounts, and other irregularities, including the seizure of hundreds of bank accounts and mobile phones. A CAG report already flagged significant losses, and the ED estimates potential losses could exceed ₹1,000 crore state-wide. The investigation is based on FIRs filed by the Anti-Corruption Bureau, which include allegations of record tampering and misappropriation of funds.

**News Article:**

**Telangana Sheep Scheme Faces Massive Corruption Probe, Potential Losses Exceed ₹1,000 Crore**

**Hyderabad, August 1, 2025:** A major scandal is brewing in Telangana, with the Directorate of Enforcement (ED) uncovering potential fraud exceeding ₹1,000 crore in the state government’s Sheep Rearing Development Scheme (SRDS). The scheme, aimed at supporting livestock farmers, is now under intense scrutiny following raids and investigations revealing widespread irregularities.

ED officials conducted search operations at eight locations across Hyderabad on Wednesday, targeting individuals linked to the alleged fraud, including G. Kalyan Kumar, Officer on Special Duty (OSD) to former Animal Husbandry Minister Talasani Srinivasa Yadav. Raids revealed evidence of illegal kickbacks, fake invoices, and a network of mule accounts used to divert funds. Investigators seized blank chequebooks, passbooks, debit cards connected to over 200 suspect accounts, and multiple mobile phones and SIM cards believed to be part of the operation.

“The investigation revealed that funds meant for genuine beneficiaries were being siphoned off to individuals with no prior connection to the livestock sector,” an ED source confirmed. “The scale of the alleged corruption is deeply concerning.”

A Comptroller and Auditor General (CAG) report from 2021 had already highlighted significant irregularities in the SRDS, including missing beneficiary records, fabricated invoices, and allocation of sheep units to deceased or non-existent individuals. The CAG audit, covering only seven of Telangana’s 33 districts, estimated losses at ₹253.93 crore. The ED believes the actual losses could be far greater if the irregularities are extrapolated across the entire state.

The ED’s investigation is based on FIRs filed by the Anti-Corruption Bureau, alleging the OSD to the ex-minister forcibly removed records from the department’s office after the change in government. The investigation also looks into reports of a sheep merchant claiming ₹2.1 crore owed for sheep supplies was siphoned off by departmental officials and diverted to unrelated accounts. This has prompted questions about transparency and accountability within the Animal Husbandry Department and the previous state government’s oversight.

Opposition parties are demanding a thorough and impartial investigation, calling for accountability at all levels. The ED probe continues to widen, and more revelations are expected in the coming weeks. The scandal threatens to cast a shadow over the state government and its commitment to rural development.

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