Armed with the documents and key information provided by the CBI, the Enforcement Directorate (ED) of the Union Finance Ministry is speedily moving towards taking steps to prepare charge sheet against the mining mafia don Mr. Gali Janardhan Reddy and confiscate his properties under the Money Laundering Act.

CBI found that Gali floated bogus companies in Cambodia, Dubai, Singapore, Vietnam, China and Indonesia and sold higher quality iron ore to these companies for lower prices on record. He sold the iron ore to these bogus companies for the rates ranging from US $ 70 to $100 per ton against the prevailing market rates of US $ 140 to $170 per ton.

The crux of the matter is that these companies in turn sold away the iron ore to the Chinese companies at market rates only. However, these companies owned by Gali brothers, paid the balance amount to the Brahmani Steels in shape of investments.

All these Gali owned companies just routed the huge amounts to the Brahmani steels to show that they are foreign investments. This is the game plan of Gali brothers who adopted the illegal route of their bogus companies to convert the black money into white.

Armed with the information, the ED, which has already registered cases against the Gali Janardhan reddy and his Obulapuraam Mining Company (OMC) under the Money Laundering Act and Foreign Exchange Act, is now taking further steps to seize their properties.