The YSRCP gang produced atleast two films to convert the black money looted in the liquor scam into white money. Raj Kasireddy, the main accused in this case, established a production company called ED Entertainments and produced the films ‘Malli Modalaindi’ starring Sumanth and ‘Spy’ starring Nikhil Siddharth.
The SIT investigation revealed that Rs 40 crore worth of black money was spent on the production of these two films. However, the company showed in its records that it spent only Rs 12 crore, which was financed by borrowing. When the SIT investigated and found that all these were fraudulent accounts, the real secret was revealed.
According to the SIT probe, Raj Kasieddy’s gang first handed over the bribes taken in cash from liquor distilleries and supply companies to some people. Then, they got the money deposited in the ED Entertainments account from them. The records showed that this money was borrowed from them.
The wife of a film actor who had a huge hit at the Pan India level last year and collected huge collections also sent up to Rs 1 crore to the ED Entertainments account. The SIT investigation found that the money was not returned to her. The SIT concluded that apart from the Rs 12 crore, the remaining Rs 28 crore was spent in cash.
What is the budget shown in the records for the production of the films ‘Malli Modhalindi’ and ‘Spy’? How much was the actual cost of it? Where did this money come from? How was it paid? How much business was done? The SIT found out all the details of how much those films collected during the investigation.
Uppalapati Charan Tej, who was the CEO of ED Entertainments, was questioned comprehensively about all this 2 days ago. It turned out that even though these 2 films were flops at the box office, all the OTT and other rights were sold for Rs 36 crore.
It was concluded that a total of Rs 40 crore of black money was spent on the production of these films and Rs 36 crore was converted into white money. The SIT will soon submit the details of this investigation to the court.