The Enforcement Directorate (ED) conducted raids at five locations in Bengaluru and Chikkaballapur, including the residence of Bagepalli Congress MLA Subba Reddy and four of his associates, in connection with alleged violations under the Foreign Exchange Management Act (FEMA).
Following scrutiny of documents, ED officials took Subba Reddy and his associates in for questioning, focusing on suspicious foreign bank accounts and financial transactions.
Subba Reddy, who owns the popular Bhagini chain of restaurants across Bengaluru and nearby districts, had declared that most of his business investments were sourced from Malaysia, Hong Kong, Germany, and Singapore.
However, the ED reportedly discovered significant deposits in investor accounts registered under the names of his family members. These funds were allegedly used for purchasing vehicles, land, and other assets, but falsely projected as Foreign Direct Investment (FDI).
The investigation raises questions about misuse of foreign funds and concealed financial dealings linked to family-held accounts under the pretext of overseas investment.